The economic think tank Global Trade Research Initiative on Sunday called for a review of Quality Control Orders to ensure that the standards protect consumers without becoming licensing or import restrictions.
According to the GTRI, mandatory quality certification under these orders increases expenses, damages MSMEs, and boosts the price of goods.
It further stated that if other nations enact similar regulations, Indian exporters might have to pay hefty travel and per diem expenses for visiting officers, licensing, renewal, and testing fees in addition to obtaining separate country-specific certifications even if their products already meet accepted international standards.
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According to GTRI founder Ajay Srivastava, this would increase export expenses, postpone shipments, and erect new trade barriers.
"A top-level review is needed to ensure that QCOs protect consumers without becoming import restrictions or licensing barriers. Without wider reform, the system risks weakening MSMEs, raising prices and discouraging the manufacturing investment that Make in India seeks to attract," he said.
In Tokyo recently, Commerce and Industry Minister Piyush Goyal said India would evolve a framework to ease or waive mandatory quality certification for high-technology industries.
The announcement comes amid concerns voiced by Japanese companies over the Quality Control Order system in India.
"The proposed relief for high-technology industries is welcome. But India needs a broader review of its QCO regime, which is raising costs for manufacturers, disrupting supply chains and discouraging investment," he said.
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QCOs are the government regulations that make Bureau of Indian Standards (BIS) certification mandatory for certain products. Products covered under a QCO must comply with the prescribed Indian Standard and obtain the BIS mark before they can be sold or imported into the country.
GTRI said a Japan External Trade Organisation (JETRO) survey for fiscal 2025 found that 71.9% of Japanese manufacturers operating in India reported that BIS certification had already affected, or was expected to affect, their operations.
(With PTI Inputs)
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