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 provide immediate clarity on the newly notified quality certification mechanism. While the reform aims to streamline compliance, experts warn that without transparent, time-bound guidelines, the new system could inadvertently create fresh regulatory bottlenecks for Indian and global manufacturers.

Addressing the Transition Facilitation Order, 2026

The recent notification of the Transition Facilitation (Quality Control) Order, 2026, introduces an alternative compliance pathway for 10 specific Quality Control Orders (QCOs). These orders impact a wide range of consumer and industrial goods, including toys, footwear, furniture, air conditioners, compressors, personal protective equipment, hinges, and various domestic electrical appliances.

This new mechanism is designed to mitigate the long-standing delays associated with mandatory Bureau of Indian Standards (BIS) certifications, which have frequently hindered industry operations. However, the GTRI argues that the success of this reform hinges entirely on the granularity of the operational guidelines issued by the DPIIT.

The Risk of "QCO Plus" and Administrative Hurdles

GTRI Founder Ajay Srivastava has raised concerns that the new framework might simply replace one hurdle with another. Under the current proposal, 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 moves beyond mere technical conformity to evaluate factors like localization, supply-chain development, and broader industrial policy, Srivastava describes the regime as a "QCO Plus" system. This shift suggests that market access may now depend as much on industrial policy alignment as it does on technical product standards. To prevent this from becoming a discretionary bottleneck, GTRI recommends a fully digital application system with a mandate to process decisions within 60 to 90 days.

Eligibility Constraints and Transparency Needs

A significant limitation identified by the think tank is the eligibility criteria. Currently, only companies incorporated under the Companies Act, 2013, are eligible to apply. For foreign manufacturers, this means they must have an Indian representative company registered under the Act to utilize the scheme, a requirement that may deter several overseas firms from entering the Indian market.

To ensure a level playing field and reduce investor uncertainty, GTRI has proposed several transparency measures:

  • Detailed Documentation: Clearer guidelines on eligibility, documentation, and evaluation methodologies.
  • Appeals Process: The establishment of a formal mechanism to review and appeal rejected applications.
  • Data Disclosure: Periodic publication of anonymized data regarding applications received, approval rates, average processing times, and specific reasons for rejections.

Key Takeaways

  • Need for Speed and Clarity: GTRI recommends that the DPIIT implement a digital tracking system with a defined service-level timeline of 60–90 days for application approvals.
  • Shift in Compliance Nature: The new regime evolves from a technical certification to a "QCO Plus" model, where localization and industrial policy play a significant role in approval decisions.
  • Restrictive Eligibility: The current mandate requiring registration under the Companies Act, 2013, may pose an entry barrier for certain foreign manufacturers looking to comply with Indian standards.