GTRI Urges DPIIT to Issue Clear 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 release detailed operational guidelines for the recently notified Transition Facilitation (Quality Control) Order, 2026. While the move aims to streamline compliance, experts warn that without transparent, time-bound processes, the reform could inadvertently create new bureaucratic bottlenecks for businesses.

Addressing the BIS Certification Bottleneck

The Indian government recently notified the Transition Facilitation (Quality Control) Order, 2026, to provide an alternative compliance pathway for 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, hinges, and various domestic electrical appliances.

The primary objective of this reform is to alleviate the significant delays industries have faced when attempting to obtain mandatory Bureau of Indian Standards (BIS) certification. By offering an alternative route, the government hopes to ease the operational burden caused by lengthy factory inspection processes.

Concerns Over 'QCO Plus' and Discretionary Powers

Despite the intended benefits, GTRI Founder Ajay Srivastava has cautioned that the new mechanism might simply replace one regulatory hurdle with another. Under the new framework, applications will be reviewed by an Implementation Committee composed of representatives from the BIS, Department of Commerce, Department of Consumer Affairs, and the DGFT.

The concern lies in the committee's broad mandate. Unlike standard technical inspections, this committee's assessment extends into areas like localization, supply-chain development, and broader industrial policy. This shift effectively transforms the quality control regime into what Srivastava calls a "QCO Plus" system, where market access becomes as much about fulfilling industrial policy goals as it is about technical product conformity.

Critical Implementation Gaps and Recommendations

GTRI has highlighted several specific areas where the DPIIT must act to ensure the success of this reform:

  • Eligibility Restrictions: Currently, only companies incorporated under the Companies Act, 2013, are eligible to apply. This excludes many foreign manufacturers who do not have a registered Indian representative company, potentially discouraging overseas investment.
  • Lack of Defined Timelines: To prevent administrative delays, GTRI recommends a fully digital application and tracking system with a mandatory decision window of 60 to 90 days.
  • Need for Transparency: The think tank suggests that the DPIIT should publish anonymized data regarding the number of applications received, approval rates, average processing times, and specific reasons for rejections.
  • Appeal Mechanisms: To build industry confidence, a formal mechanism for the appeal or review of rejected applications should be established.

As industry experts note, the ultimate success of the 2026 Order depends on whether the DPIIT structures guidelines that prioritize efficiency or if it implements a demanding administrative screening process that mirrors the complexities of the old system.

Key Takeaways

  • The new regime offers an alternative to BIS certification for 10 key product categories but introduces an inter-ministerial committee with broad discretionary powers.
  • Experts warn of a "QCO Plus" scenario where compliance depends on localization and industrial policy rather than just technical quality.
  • GTRI recommends clear, digital, and time-bound guidelines (60-90 days) to prevent the new framework from becoming a new source of regulatory uncertainty.