Centre Eases BIS Compliance with New Risk-Based Framework for Manufacturers
The Indian government has introduced a transformative risk-based compliance mechanism designed to streamline the process of meeting Quality Control Orders (QCOs). This strategic move aims to reduce regulatory bottlenecks for manufacturers while simultaneously upholding high standards of consumer protection and product quality.
Shifting from Strict Inspection to Risk-Based Compliance
The Department for Promotion of Industry and Internal Trade (DPIIT) has notified the Transition Facilitation (Quality Control) Order, 2026, to address growing industrial concerns regarding the complexities of Bureau of Indian Standards (BIS) certification. Under the previous, more rigid norms, obtaining certification was often a time-consuming hurdle for many businesses.
The new framework introduces an alternative pathway that prioritizes "risk-based" assessments over one-size-fits-all inspections. By doing so, the government seeks to facilitate a smoother transition for industries navigating the evolving landscape of Indian quality standards, ensuring that the manufacturing ecosystem remains both robust and agile.
Simplified Certification: Scheme I vs. Scheme II
One of the most significant shifts in this new policy is how domestic manufacturers can source their supplies. Previously, the heavy reliance on Scheme I certification acted as a barrier to seamless supply chain integration.
Under the new mechanism, domestic manufacturers are permitted to source supplies from companies holding licenses under Scheme II of the BIS (Conformity Assessment) Regulations, 2018, rather than being restricted solely to Scheme I (ISI Mark) certification.
The distinction between the two is critical for business operations:
- Scheme I (ISI Mark): Requires rigorous factory inspections, continuous surveillance, and the formal grant of a license by BIS.
- Scheme II: A registration-based system that allows manufacturers to supply products based on a self-declaration of compliance with Indian standards.
This shift significantly reduces the administrative burden on suppliers while allowing manufacturers to maintain their production timelines.
Criteria for Approval and Rewarding Compliance
The government is not lowering standards but rather refining how they are monitored. Approvals under this new risk-based mechanism will not be arbitrary; they will be determined by specific performance indicators. The DPIIT will evaluate companies based on their technical capabilities, past compliance records, commitment to adopting new technologies, and their research and design (R&D) capabilities.
Furthermore, the order introduces an incentive for consistent performers. Manufacturers who have demonstrated continuous compliance with Quality Control Orders for at least three years without any defaults will receive extended benefits. This approach rewards long-term adherence to quality norms and encourages a culture of sustained excellence.
Strengthening India’s Manufacturing Ecosystem
This reform is a strategic step toward bolstering India's "Make in India" ambitions. By reducing compliance bottlenecks, the government intends to promote technological modernization and innovation within the domestic sector. The expected outcomes include strengthened domestic value chains, improved integration with global supply chains, and reinforced consumer confidence in the safety and quality of products available in the Indian market.
Key Takeaways
- Simplified Sourcing: Manufacturers can now source from Scheme II (self-declaration) certified suppliers instead of being limited to Scheme I (ISI Mark) holders.
- Performance-Linked Approvals: Eligibility for the new framework depends on technical capability, innovation, and a proven track record of compliance.
- Incentivizing Consistency: Companies with three years of uninterrupted compliance with QCOs will receive special recognition and benefits.