GTRI Urges Clear DPIIT Guidelines on 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 transparent, operational guidelines for the newly notified Transition Facilitation (Quality Control) Order, 2026. While the reform aims to streamline compliance, industry experts warn that without clear timelines and measurable parameters, the new system could create fresh administrative bottlenecks.

Addressing Delays in BIS Certification

The government’s new mechanism creates an alternative compliance pathway under 10 specific Quality Control Orders (QCOs). These orders cover a wide range of essential products, including toys, footwear, furniture, air conditioners, compressors, personal protective equipment (PPE), hinges, and various domestic electrical appliances.

The primary goal of this reform is to mitigate the longstanding delays associated with obtaining mandatory Bureau of Indian Standards (BIS) certification. Historically, industries have struggled with the lengthy processes required for factory inspections, which have often hindered smooth market entry and operational efficiency.

The Risk of a "QCO Plus" System

GTRI Founder Ajay Srivastava has raised concerns that the new framework might inadvertently replace technical hurdles with administrative ones. Under the new order, applications will be reviewed by an Implementation Committee comprising representatives from the BIS, Department of Commerce, Department of Consumer Affairs, and the DGFT.

Because this committee's assessment extends beyond simple technical conformity to include factors like localization, supply-chain development, and broader industrial policy, Srivastava describes the shift as a "QCO Plus" system. This suggests that market access may now depend as much on meeting industrial policy goals as it does on product quality. To prevent this from becoming a new regulatory bottleneck, GTRI recommends that the committee adopt a fully digital tracking system and aim to process applications within a 60-to-90-day window.

Potential Barriers for Foreign Manufacturers

A significant limitation noted by the think tank is the eligibility criteria. Currently, only companies incorporated under the Companies Act, 2013, are eligible to apply under this new mechanism.

This restriction implies that foreign manufacturers can only utilize the scheme if they have an Indian representative company registered under the Act. This specific requirement may discourage many overseas firms from engaging with the new framework, potentially limiting the diversity of the supply chain.

Demands for Transparency and Accountability

To ensure the success of the Transition Facilitation Order, GTRI has proposed several measures to enhance institutional confidence:

  • Detailed Guidelines: DPIIT must specify exact eligibility criteria, documentation requirements, and evaluation methodologies.
  • Data Transparency: The department should periodically publish anonymized data regarding the number of applications received, approval rates, average processing times, and specific reasons for rejections.
  • Appeal Mechanism: A formal process for the review of rejected applications should be established to provide recourse for businesses.

Key Takeaways

  • The new reform seeks to ease the burden of BIS factory inspections for 10 product categories but introduces a committee-based screening process.
  • There is a risk of the regime becoming a "QCO Plus" system, where approvals are tied to localization and industrial policy rather than just technical standards.
  • Clear, time-bound (60–90 days) digital guidelines and an appeal mechanism are essential to prevent new compliance hurdles for Indian and foreign manufacturers.