GTRI Urges DPIIT for Clear Guidelines on 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 comprehensive operational guidelines for the newly notified Transition Facilitation (Quality Control) Order, 2026. While the reform aims to streamline compliance, experts warn that without transparency, it could create new administrative bottlenecks for businesses.

Addressing Delays in BIS Certification

The government’s new mechanism introduces an alternative compliance pathway for 10 specific Quality Control Orders (QCOs). These orders cover a diverse range of essential products, including toys, footwear, furniture, air conditioners, compressors, personal protective equipment, hinges, and various domestic electrical appliances.

The reform is designed to tackle a major industry grievance: the long delays associated with mandatory Bureau of Indian Standards (BIS) factory inspections. By providing an alternative route, the government hopes to ease the operational burden on manufacturers. However, GTRI Founder Ajay Srivastava emphasizes that the success of this initiative hinges on the issuance of clear eligibility criteria, documentation requirements, and evaluation methodologies to reduce industry uncertainty.

The Risk of a "QCO Plus" System

A significant concern raised by GTRI is that the new framework might replace technical hurdles with administrative ones. Under the new order, 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 goes beyond mere technical conformity to evaluate factors like localization, supply-chain development, and industrial policy, Srivastava describes the shift as a transition toward a "QCO Plus" system. Instead of waiting for physical factory inspections, manufacturers must now navigate an inter-ministerial committee that possesses broad discretionary powers. This could potentially make market access as much a matter of industrial policy as it is of product quality.

Implementation Hurdles and Eligibility Constraints

The new regime also presents specific challenges for foreign entities. Currently, the mechanism is only open to companies incorporated under the Companies Act, 2013. This implies that foreign manufacturers can only utilize the scheme if they have a registered Indian representative company, a constraint that may deter certain overseas firms from participating.

To mitigate these risks, GTRI has proposed several structural improvements:

  • Digital Integration: Adopting a fully digital application and tracking system with a defined service-level agreement, ideally processing applications within 60–90 days.
  • Transparency Measures: The DPIIT should periodically publish anonymized data regarding application volumes, approval rates, average processing times, and specific reasons for rejections.
  • Appellate Mechanism: Establishing a formal process for the appeal or review of rejected applications to build industry confidence.

Key Takeaways

  • New Compliance Path: The Transition Facilitation Order, 2026, offers an alternative to BIS factory inspections for 10 product categories, including electronics and footwear.
  • Shift in Oversight: The reform moves oversight from technical inspections to an inter-ministerial committee, raising concerns about "QCO Plus" administrative hurdles.
  • Demand for Clarity: Experts urge the DPIIT to provide time-bound, digital, and transparent guidelines to ensure the reform simplifies rather than complicates market access.