GTRI Urges Clear DPIIT Guidelines to Prevent New Compliance Hurdles

The Global Trade Research Initiative (GTRI) has called upon the Department for Promotion of Industry and Internal Trade (DPIIT) to release comprehensive operational guidelines for the newly notified quality certification mechanism. While the reform aims to streamline compliance, experts warn that without transparent implementation, it may inadvertently create a new layer of bureaucratic complexity.

Transitioning from BIS to Inter-Ministerial Oversight

The DPIIT recently notified the Transition Facilitation (Quality Control) Order, 2026, which introduces 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 household electrical safety products.

Under this new framework, applications will no longer rely solely on traditional Bureau of Indian Standards (BIS) factory inspections. Instead, they will be reviewed by an Implementation Committee chaired by the DPIIT. This committee includes high-level representatives from the Bureau of Indian Standards (BIS), the Department of Commerce, the Department of Consumer Affairs, and the Directorate General of Foreign Trade (DGFT).

The Risk of a "QCO Plus" Regulatory System

GTRI Founder Ajay Srivastava has expressed concerns that the new mechanism might replace one regulatory bottleneck with another. He suggests that the framework is evolving into a "QCO Plus" system because the committee’s assessment extends beyond technical conformity.

Unlike standard quality checks, this inter-ministerial committee will also evaluate factors such as localization, supply-chain development, and broader industrial policy. This shift means that market access may become as much a matter of adhering to industrial policy as it is about meeting technical safety standards. To prevent undue delays, GTRI has recommended that the committee adopt a fully digital application and tracking system, with a target processing time of 60 to 90 days.

Eligibility Constraints and Transparency Demands

A significant point of contention is the eligibility criteria. Currently, the mechanism is only available to companies incorporated under the Companies Act, 2013. GTRI points out that this limitation could discourage many overseas manufacturers, as foreign firms can only participate if they have a registered Indian representative company.

To ensure the success of this reform, GTRI has proposed several critical measures to foster industry confidence:

  • Detailed Guidelines: DPIIT must specify clear eligibility criteria, documentation requirements, and evaluation methodologies.
  • Data Transparency: The government should periodically publish anonymized data regarding the number of applications received, approval rates, average processing times, and specific reasons for rejections.
  • Appeals Process: A formal mechanism for the review of rejected applications is essential to ensure fairness and consistency.

Key Takeaways

  • New Compliance Pathway: The Transition Facilitation Order, 2026, offers an alternative to traditional BIS inspections for 10 product categories, including electronics and footwear.
  • Policy-Driven Approvals: The shift toward an inter-ministerial committee means approvals will now consider localization and supply chain commitments alongside technical quality.
  • Call for Clarity: Experts urge the DPIIT to provide time-bound, digital, and transparent guidelines to prevent the new system from becoming a bureaucratic hurdle for both domestic and foreign manufacturers.