GTRI Urges DPIIT to Issue 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 provide granular operational guidelines for the recently notified quality certification mechanism. While the reform aims to ease compliance, experts warn that without transparency and defined timelines, the new system could create fresh administrative hurdles for manufacturers.

Addressing Delays in BIS Certification

The government recently notified the Transition Facilitation (Quality Control) Order, 2026, which introduces an alternative compliance pathway under 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 (PPE), hinges, and various domestic electrical appliances.

The primary goal of this reform is to alleviate the longstanding delays associated with mandatory Bureau of Indian Standards (BIS) certifications, which have historically slowed down market entry and operational efficiency for many businesses. Under the new mechanism, an Implementation Committee—comprising representatives from the DPIIT, BIS, Department of Commerce, Department of Consumer Affairs, and the DGFT—will oversee applications.

The Risk of a 'QCO Plus' System

GTRI Founder Ajay Srivastava has cautioned that the reform might inadvertently replace one bottleneck with another. Currently, the main hurdle is waiting for BIS factory inspections. However, the new framework shifts the focus toward an inter-ministerial committee that exercises broad discretionary powers.

Because this committee’s assessment extends beyond mere technical conformity to include factors like localization, supply-chain development, and industrial policy, the system is being viewed as a "QCO Plus" regime. This shift suggests that market access may become as much a matter of navigating industrial policy as it is about meeting technical safety standards.

Key Recommendations for Transparent Implementation

To ensure this reform succeeds rather than complicates the regulatory landscape, GTRI has proposed several structural improvements:

  • Standardized Guidelines: DPIIT must clearly define eligibility criteria, documentation requirements, and evaluation methodologies to reduce industry uncertainty.
  • Digital and Time-Bound Processes: The implementation of a fully digital application and tracking system is recommended, with a target turnaround time of 60 to 90 days for decisions.
  • Inclusivity and Appeals: Current rules limit eligibility to companies incorporated under the Companies Act, 2013. This means foreign manufacturers must have an Indian representative company, which may discourage overseas investment. Additionally, a formal mechanism for appealing rejected applications is essential to build industry confidence.

Experts, including Shaunak Rungta of the Vardhan Group, emphasize that the ultimate success of the order depends on whether the DPIIT structures the guidelines to simplify compliance or merely replaces technical inspections with an equally demanding administrative screening process.

Key Takeaways

  • New Compliance Path: The Transition Facilitation Order, 2026, offers an alternative to traditional BIS certification for 10 key product categories to reduce delays.
  • Shift in Evaluation: The new regime moves from purely technical factory inspections to a committee-based review that considers localization and industrial policy.
  • Need for Clarity: GTRI demands transparent, digital, and time-bound (60–90 days) guidelines to prevent the new mechanism from becoming a fresh regulatory hurdle.