GTRI Urges DPIIT to Provide 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 detailed operational guidelines for India's newly notified quality certification mechanism. While the reform aims to streamline compliance, experts warn that without transparent implementation, it could inadvertently create new bureaucratic hurdles for businesses.

Addressing Delays in BIS Certification

The DPIIT recently notified the Transition Facilitation (Quality Control) Order, 2026, which introduces an alternative compliance pathway for 10 specific Quality Control Orders (QCOs). This mechanism covers 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 mitigate the long-standing delays associated with mandatory Bureau of Indian Standards (BIS) certification, which has frequently hindered industry operations. Under the new framework, an Implementation Committee—comprising representatives from the BIS, Department of Commerce, Department of Consumer Affairs, and DGFT—will examine applications to provide a faster route to market access.

The Risk of 'QCO Plus' and New Compliance Hurdles

Despite the potential for faster approvals, GTRI Founder Ajay Srivastava has raised concerns that the reform might replace technical hurdles with administrative ones. He noted that the new mechanism could evolve into a "QCO Plus" system. Unlike the current technical conformity process, the new committee’s assessment is expected to weigh factors such as localization, supply-chain development, and broader industrial policy.

Furthermore, the eligibility criteria present a significant barrier for international players. Currently, only companies incorporated under the Companies Act, 2013, are eligible to apply. This implies that foreign manufacturers must have an Indian representative company registered under the Act to benefit from the scheme, a requirement that may discourage many overseas firms from entering the Indian market.

Recommendations for Transparent Implementation

To ensure the success of this transition, GTRI has proposed several measures to ensure predictability and efficiency for businesses:

  • Defined Timelines: Implementation of a digital application and tracking system with a mandate to process applications within 60 to 90 days.
  • Standardized Criteria: The issuance of clear guidelines regarding eligibility, documentation requirements, and evaluation methodologies to reduce regulatory uncertainty.
  • Data Transparency: Periodic publication of anonymized data, including the number of applications received, approval rates, average processing times, and specific reasons for rejections.
  • Appellate Mechanism: The creation of a formal process for the appeal or review of rejected applications to build industry confidence.

As industry experts suggest, the effectiveness of this order will ultimately hinge on whether the DPIIT structures a simplified administrative process or a demanding screening system that prioritizes industrial policy over technical conformity.

Key Takeaways

  • The new Transition Facilitation Order offers an alternative to BIS certification for 10 product categories but requires approval from a multi-ministerial committee.
  • Experts warn of a "QCO Plus" scenario where market access depends on localization and investment commitments rather than just technical standards.
  • Successful implementation requires clear, time-bound guidelines (60-90 days) and a digital system to prevent new bureaucratic bottlenecks.