GTRI Warns of New Compliance Hurdles in India's Quality Certification Reform

The Department for Promotion of Industry and Internal Trade (DPIIT) has recently notified the Transition Facilitation (Quality Control) Order, 2026, introducing an alternative compliance pathway for several critical product categories. While intended to streamline processes, trade policy think tank Global Trade Research Initiative (GTRI) has cautioned that the reform's success hinges on clear, transparent, and time-bound operational guidelines.

Addressing the BIS Certification Bottleneck

The new mechanism aims to alleviate long-standing industry grievances regarding delays in obtaining mandatory Bureau of Indian Standards (BIS) certifications. Under the new order, an alternative route is available for 10 specific Quality Control Orders (QCOs) covering diverse sectors, including toys, footwear, furniture, air conditioners, compressors, personal protective equipment, hinges, and various domestic electrical appliances.

Currently, the primary hurdle for manufacturers is the mandatory requirement for BIS factory inspections. The new framework seeks to reduce this dependence, potentially accelerating market entry for compliant goods. However, GTRI Founder Ajay Srivastava warns that without specific details on eligibility, documentation, and evaluation methodologies, the reform may lack the predictability required by the industry.

The Rise of the 'QCO Plus' System

A significant concern raised by GTRI is that the new regime may inadvertently replace technical inspections with complex administrative screenings. Applications under this new mechanism will be reviewed by an inter-ministerial Implementation Committee, which includes representatives from the BIS, Department of Commerce, Department of Consumer Affairs, and the DGFT.

Unlike standard technical conformity checks, this committee possesses broad discretionary powers to assess factors such as localization, supply-chain development, and broader industrial policy commitments. This shift has led experts to label the new framework a "QCO Plus" system. This implies that obtaining market access may now be as much about meeting industrial policy objectives as it is about meeting technical safety and quality standards.

Potential Barriers for Foreign Manufacturers

The current eligibility criteria present a specific challenge for international players. The mechanism is restricted to companies incorporated under the Companies Act, 2013. This means that foreign manufacturers cannot apply directly; they must have an Indian representative company registered under the Act to utilize the scheme. GTRI suggests this limitation could act as a deterrent for many overseas firms looking to enter the Indian market.

To ensure the system remains efficient and fair, GTRI has recommended several structural improvements:

  • Digital Integration: Implementing a fully digital application and tracking system with defined service-level timelines.
  • Strict Timelines: Aiming for a decision-making window of 60 to 90 days for all applications.
  • Transparency Measures: Periodically publishing anonymized data regarding the number of applications, approval rates, average processing times, and specific reasons for rejections.
  • Appeals Process: Establishing a formal mechanism for the review of rejected applications to build industry confidence.

Key Takeaways

  • New Compliance Pathway: The Transition Facilitation Order, 2026, offers an alternative to standard BIS inspections for 10 key product categories, including electronics and footwear.
  • Shift to Policy-Driven Approvals: The move from technical inspections to an inter-ministerial committee review introduces "QCO Plus," where localization and industrial policy play a major role.
  • Need for Clarity: Industry experts urge the DPIIT to provide detailed guidelines on eligibility and timelines to prevent new administrative bottlenecks.