Centre Eases BIS Compliance with New Risk-Based Framework

The Indian government has introduced a transformative risk-based compliance mechanism designed to streamline the process of adhering to Quality Control Orders (QCOs). This strategic move aims to reduce regulatory bottlenecks for manufacturers while ensuring that product quality and consumer safety remain uncompromised.

Transitioning from Rigid to Risk-Based Certification

The Department for Promotion of Industry and Internal Trade (DPIIT) has notified the Transition Facilitation (Quality Control) Order, 2026, in response to industry concerns regarding the complexities of obtaining Bureau of Indian Standards (BIS) certification. Under the previous, more stringent norms, many manufacturers faced significant hurdles in meeting the rigorous requirements of existing quality control mandates.

The new framework introduces an alternative pathway that balances strict quality assurance with operational ease. Rather than enforcing a one-size-fits-all approach, the government will now evaluate compliance through a lens of risk, allowing for a smoother transition for eligible domestic players into the formal quality ecosystem.

Scheme II: A Simplified Route for Domestic Manufacturers

One of the most significant shifts in this new order is the shift in supplier requirements. Previously, many manufacturers were required to source supplies only from companies holding Scheme I (ISI Mark) certification, which involves intensive factory inspections and continuous surveillance by BIS.

Under the new mechanism, domestic manufacturers will now be permitted to source supplies from companies holding licenses under Scheme II of the Bureau of Indian Standards (Conformity Assessment) Regulations, 2018. Unlike Scheme I, Scheme II is a registration-based system that allows manufacturers to supply products based on a self-declaration of compliance with Indian standards. This shift is expected to drastically reduce the time and cost associated with supply chain procurement.

Criteria for Eligibility and Incentivizing Compliance

To ensure that this eased compliance does not lead to a dip in standards, the government has established strict eligibility criteria for the new mechanism. Approvals will not be granted arbitrarily; instead, they will be based on a manufacturer's:

  • Technical capability and research and design (R&D) capabilities.
  • Past compliance record and commitment to technology adoption.
  • Proven efforts toward innovation and strengthening domestic supply chains.

Furthermore, the order rewards long-term discipline. Manufacturers that have demonstrated continuous compliance with Quality Control Orders for at least three years without a single default will receive extended benefits, recognizing their sustained adherence to high-quality standards.

Boosting India’s Manufacturing Ecosystem

The DPIIT views this reform as a catalyst for technological modernization and innovation. By reducing the "compliance burden," the government aims to strengthen domestic value chains and improve India's integration into global supply chains. Ultimately, the initiative seeks to foster a more competitive manufacturing landscape while reinforcing consumer confidence in the safety and quality of products available in the Indian market.

Key Takeaways

  • Simplified Sourcing: Manufacturers can now utilize Scheme II (self-declaration) suppliers instead of being restricted to Scheme I (ISI Mark) suppliers.
  • Performance-Based Approvals: Eligibility for the eased framework depends on technical capability, R&D strength, and a clean compliance history.
  • Rewarding Consistency: Companies with a three-year track record of zero compliance defaults will receive special recognition and benefits.