Centre Weighs Calibrated Easing Of QCOs Amid MSME, Supply Chain Concerns

Particular focus is on steel-linked QCOs, where a large number of MSME-heavy sectors, such as utensil makers, tube manufacturers and fastener units, have flagged supply bottlenecks and rising costs.

Advertisement
Read Time: 2 mins
Quality Control Orders were introduced to ensure product standards and curb imports of sub-par goods.
Representative Image
Quick Read
Summary is AI-generated, newsroom-reviewed
  • The Centre is reviewing multiple Quality Control Orders to ease MSME compliance burdens
  • Around five QCOs were relaxed in April, with more currently under active government review
  • Focus is on steel-linked QCOs affecting utensil makers, tube manufacturers, and fastener units
Did our AI summary help?
Let us know.

The Centre is reviewing multiple Quality Control Orders (QCOs) following sustained industry pushback over supply disruptions and rising compliance burden, even as it looks to retain core quality safeguards. Government sources told NDTV Profit that the approach is not a rollback but a calibrated relaxation, aimed at easing pressure on MSMEs while continuing to filter out sub-standard imports.

As part of this exercise, around five QCOs were already relaxed in April, with several more currently under active consideration. The review has gained urgency amid concerns that stringent norms are constraining input availability for downstream industries. Particular focus is on steel-linked QCOs, where a large number of MSME-heavy sectors, such as utensil makers, tube manufacturers and fastener units, have flagged supply bottlenecks and rising costs.

Advertisement

Officials are also examining specific industry requests, including a likely relaxation of QCOs on hand tools following representations from industry bodies. Norms governing nuts, bolts and fasteners are also expected to come under review. Sources said the government is open to procedural relaxations and deadline extensions, especially in cases where firms meet underlying quality benchmarks but face compliance or certification delays.

Industry engagement has intensified in recent weeks, with authorities emphasising that requests for relaxation must be routed through industry associations, rather than individual companies, to ensure broader sectoral representation. The evolving thinking within the government points to a phased approach, deferring or easing select QCOs, to strike a balance between quality control and supply stability, particularly at a time when domestic manufacturing value chains remain sensitive to disruptions.

Advertisement

QCOs or Quality Control Orders were introduced to ensure product standards and curb imports of sub-par goods. However, policymakers have increasingly acknowledged implementation challenges. Notably, NITI Aayog has flagged certain QCOs as bottlenecks, calling for a rethink to avoid choking manufacturing activity. The ongoing review signals a more pragmatic stance, as the Centre looks to fine-tune its quality regime without undermining industrial growth.

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.

Loading...