GTRI Urges Clear DPIIT Guidelines for New Quality Certification Regime
The Global Trade Research Initiative (GTRI) has called upon the Department for Promotion of Industry and Internal Trade (DPIIT) to provide explicit operational guidelines for the recently notified Transition Facilitation (Quality Control) Order, 2026. While the move aims to streamline compliance, experts warn that without transparency, the reform could inadvertently create new bureaucratic bottlenecks for businesses.
Addressing the BIS Certification Bottleneck
The Indian government recently introduced the Transition Facilitation (Quality Control) Order, 2026, to offer an alternative compliance pathway for 10 specific Quality Control Orders (QCOs). These orders cover a wide range of critical products, including toys, footwear, furniture, air conditioners, compressors, personal protective equipment, hinges, and domestic electrical appliances.
Historically, industries have struggled with significant delays in obtaining mandatory Bureau of Indian Standards (BIS) certification, primarily due to the lengthy factory inspection process. The new mechanism seeks to ease this burden by shifting the focus from physical factory inspections to an assessment conducted by an inter-ministerial Implementation Committee.
The Risk of a "QCO Plus" System
While the reform intends to simplify processes, GTRI Founder Ajay Srivastava warns that it could evolve into a "QCO Plus" system. Unlike the standard BIS process, which focuses on technical conformity, the new Implementation Committee—comprising representatives from the BIS, Department of Commerce, Consumer Affairs, and DGFT—will have broad discretionary powers.
The committee’s assessment is expected to extend beyond technical standards to include factors such as localisation, supply-chain development, and broader industrial policy. This shift means that market access may no longer depend solely on product quality, but also on a manufacturer's commitment to Indian industrial goals.
Critical Implementation Gaps and Recommendations
GTRI has identified several areas where the current framework lacks clarity, potentially increasing uncertainty for domestic and foreign manufacturers:
- Eligibility Restrictions: Currently, only companies incorporated under the Companies Act, 2013, are eligible. This poses a challenge for foreign manufacturers who may not have a registered Indian representative company, potentially discouraging overseas investment.
- Lack of Defined Timelines: To prevent administrative delays, GTRI suggests that the DPIIT implement a digital application and tracking system with a strict service-level agreement, ideally processing applications within 60 to 90 days.
- Need for Transparent Parameters: Experts are calling for detailed documentation on eligibility criteria, evaluation methodologies, and a robust mechanism for the appeal or review of rejected applications.
To ensure accountability, GTRI has recommended that the DPIIT periodically publish anonymised data regarding the number of applications received, approval rates, average processing times, and specific reasons for rejections.
Key Takeaways
- The new regime offers an alternative to BIS factory inspections for 10 product categories but introduces an inter-ministerial committee with broad discretionary powers.
- There is a significant risk that the reform could replace technical hurdles with administrative ones, moving toward a "QCO Plus" model linked to localisation and industrial policy.
- For the reform to succeed, the DPIIT must provide clear guidelines on eligibility, implement a digital tracking system, and ensure time-bound approvals within 60-90 days.