Centre Eases BIS Compliance with New Risk-Based Framework for Industry

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.

Addressing Industry Hurdles in BIS Certification

The Department for Promotion of Industry and Internal Trade (DPIIT) notified the Transition Facilitation (Quality Control) Order, 2026, following significant concerns from various industrial sectors. Manufacturers had previously highlighted the complexities and difficulties involved in obtaining Bureau of Indian Standards (BIS) certification under existing, more rigid norms.

By introducing this alternative framework, the Centre seeks to facilitate a smoother transition for businesses, allowing them to navigate quality assurance requirements without the heavy administrative burden that often slows down production and supply chain efficiency.

Shift from Scheme I to Scheme II Compliance

The most significant technical change under the new framework involves how domestic manufacturers can source their supplies. Previously, stringent requirements often mandated that suppliers hold Scheme I (ISI Mark) certification, which involves rigorous factory inspections, continuous surveillance, and the formal granting of an ISI Mark licence by BIS.

Under the new risk-based mechanism, eligible domestic manufacturers can now source supplies from companies holding licences under Scheme II of the BIS (Conformity Assessment) Regulations, 2018. Unlike Scheme I, Scheme II operates on a registration system that allows manufacturers to supply products based on a self-declaration of compliance with Indian standards. This shift is expected to significantly accelerate the movement of goods within the domestic manufacturing ecosystem.

Criteria for Eligibility and Quality Assurance

To ensure that the easing of regulations does not lead to a dip in quality, the government has implemented a selective approval process. Approvals under this new mechanism will not be automatic; instead, they will be determined by several critical performance indicators, including:

  • Technical Capability and Innovation: Evaluation of research and design capabilities and the commitment to technology adoption.
  • Compliance Track Record: Assessment of the manufacturer's past adherence to regulatory standards.
  • Supply Chain Contribution: Efforts made to strengthen domestic supply chains and technical expertise.

Additionally, the order provides special benefits to manufacturers who have demonstrated sustained excellence, specifically those who have complied with Quality Control Orders continuously for three years without a single default.

Strengthening the Indian Manufacturing Ecosystem

The DPIIT views this reform as a catalyst for technological modernisation and innovation. By reducing compliance bottlenecks, the initiative is expected to strengthen domestic value chains and improve India's integration with global supply chains. Ultimately, the framework aims to foster a competitive manufacturing environment that reinforces consumer confidence in the safety and quality of products available in the Indian market.

Key Takeaways

  • Streamlined Sourcing: Manufacturers can now source from Scheme II (self-declaration) registered suppliers instead of being strictly limited to Scheme I (ISI Mark) holders.
  • Merit-Based Approvals: Eligibility is determined by technical capability, past compliance history, and commitment to innovation and R&D.
  • Incentivizing Consistency: Companies with three years of continuous, default-free compliance with QCOs will receive extended benefits under the new order.