Centre Unveils Risk-Based BIS Framework to Ease Compliance for Manufacturers

The Indian government has introduced a landmark 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 domestic manufacturers while ensuring that consumer safety and product quality remain uncompromised.

Transitioning from Rigid Certification to Risk-Based Models

The Department for Promotion of Industry and Internal Trade (DPIIT) has notified the Transition Facilitation (Quality Control) Order, 2026, in response to significant industry concerns. Previously, manufacturers faced stringent hurdles under the existing Bureau of Indian Standards (BIS) norms, which often slowed down production and supply chain movements.

Under the new framework, the government is moving away from a "one-size-fits-all" approach. Instead, it is introducing an alternative mechanism that allows eligible manufacturers to navigate certification through a simplified route. This reform is specifically designed to facilitate a smooth transition for industries that have struggled with the complexities of traditional quality control mandates.

Scheme I vs. Scheme II: The Core Regulatory Shift

The most significant change lies in how domestic manufacturers can source their supplies. Under the previous regime, suppliers were largely required to hold Scheme I (ISI Mark) certification, which involves rigorous factory inspections, continuous surveillance, and the formal granting of an ISI Mark licence by BIS.

The new order allows manufacturers to source supplies from companies holding licences under Scheme II of the Bureau of Indian Standards (Conformity Assessment) Regulations, 2018. Unlike the intensive Scheme I, Scheme II is a registration system based on a manufacturer's self-declaration of compliance with Indian standards. This shift significantly reduces the time and administrative burden on suppliers, allowing for more agile manufacturing processes.

Criteria for Eligibility and Compliance Incentives

The government is not relaxing standards blindly; rather, it is rewarding excellence and technical maturity. Approvals under this new risk-based mechanism will be determined by specific performance indicators, including:

  • Technical capability and R&D/design expertise.
  • A proven track record of past compliance.
  • Commitment to adopting new technologies and innovation.
  • Active efforts to strengthen domestic supply chains.

Furthermore, the order provides special benefits to manufacturers who have demonstrated sustained excellence. Those who have complied with Quality Control Orders continuously for three years without a single default will be eligible for these streamlined benefits, recognizing their commitment to quality.

Impact on India's Manufacturing Ecosystem

This policy shift is expected to have a multiplier effect on the Indian economy. By reducing compliance bottlenecks, the DPIIT aims to promote technological modernization and improve India's integration with global supply chains. Strengthening domestic value chains through this method will not only help local businesses scale faster but also reinforce consumer confidence in the safety and reliability of products available in the Indian market.

Key Takeaways

  • Simplified Sourcing: Manufacturers can now source supplies via Scheme II (self-declaration) instead of being restricted to Scheme I (ISI Mark) certification.
  • Merit-Based Compliance: Eligibility for the streamlined route depends on technical capability, innovation, and a clean three-year compliance record.
  • Economic Objective: The reform aims to reduce regulatory friction, encourage technological adoption, and strengthen India's position in global manufacturing supply chains.