GTRI Urges DPIIT to Issue Clear Guidelines for New Quality Certification Regime

The Government of India's recent move to introduce an alternative compliance pathway for quality certifications has sparked calls for greater transparency and structured implementation. While the new mechanism aims to ease the burden of mandatory Bureau of Indian Standards (BIS) inspections, experts warn that without clear operational guidelines, it may inadvertently create new bureaucratic hurdles for manufacturers.

Addressing the Transition Facilitation Order 2026

The Department for Promotion of Industry and Internal Trade (DPIIT) recently notified the Transition Facilitation (Quality Control) Order, 2026. This order creates an alternative route for compliance under 10 selected Quality Control Orders (QCOs). These orders cover a wide range of critical sectors, including toys, footwear, furniture, air conditioners, compressors, personal protective equipment, hinges, and various household electrical safety products.

The primary goal of this reform is to address the longstanding industrial grievance regarding the significant delays in obtaining mandatory BIS certifications, which have often hindered smooth market entry and compliance.

The Risks of a "QCO Plus" System

Global Trade Research Initiative (GTRI) Founder Ajay Srivastava has raised concerns that the new mechanism might replace technical bottlenecks with administrative ones. Under the new framework, an Implementation Committee—comprising representatives from the BIS, Department of Commerce, Department of Consumer Affairs, and the DGFT—will examine applications.

Srivastava notes that because the committee’s assessment extends beyond mere technical conformity to include factors like localisation and supply-chain development, the system is effectively becoming a "QCO Plus" regime. This shift suggests that market access may now depend as much on industrial policy and investment commitments as it does on product quality.

Calls for Transparency and Digital Integration

To prevent the new system from becoming a new regulatory hurdle, GTRI has recommended several critical measures:

  • Detailed Operational Guidelines: DPIIT must specify eligibility criteria, documentation requirements, and evaluation methodologies to reduce industry uncertainty.
  • Time-Bound Approvals: A fully digital application and tracking system should be implemented, with a target processing window of 60 to 90 days.
  • Data Transparency: The government should periodically publish anonymised data regarding application volumes, approval rates, average processing times, and reasons for rejection.
  • Appeals Mechanism: Establishing a formal process for reviewing rejected applications is essential to build industry confidence.

Potential Barriers for Foreign Manufacturers

A significant limitation identified by the think tank is the eligibility clause. Currently, only companies incorporated under the Companies Act, 2013, are eligible to apply. This means foreign manufacturers can only utilize this scheme if they have an Indian representative company registered under the Act, a requirement that could discourage many overseas firms from engaging with the Indian market.

Key Takeaways

  • New Compliance Pathway: The 2026 Order provides an alternative to traditional BIS factory inspections for 10 key product categories to speed up market access.
  • Shift in Criteria: The reform moves quality control toward a "QCO Plus" model, where technical standards are weighed alongside localisation and industrial policy goals.
  • Need for Structure: Experts emphasize that success depends on the DPIIT issuing clear, time-bound, and digital-first guidelines to prevent administrative delays.