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 provide comprehensive operational guidelines for the recently notified quality certification mechanism. While the reform aims to streamline compliance, industry experts warn that without transparency and clear timelines, the new regime could create fresh administrative bottlenecks.

Addressing the Transition Facilitation Order, 2026

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 new 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 objective of this reform is to alleviate the long-standing delays associated with obtaining mandatory Bureau of Indian Standards (BIS) certification. Currently, industry players have frequently cited the lengthy wait times for BIS factory inspections as a significant hurdle to business operations.

The Risk of a 'QCO Plus' System

GTRI Founder Ajay Srivastava has raised concerns that the new mechanism might inadvertently replace technical hurdles with administrative ones. Under the new framework, applications will be reviewed by an inter-ministerial Implementation Committee comprising representatives from the BIS, Department of Commerce, Department of Consumer Affairs, and the DGFT.

Because this committee’s assessment extends beyond mere technical conformity to include factors like localisation, supply-chain development, and industrial policy, Srivastava suggests the framework is effectively becoming a "QCO Plus" system. This shift means market access may become as much a matter of industrial policy as it is of product quality, potentially introducing broad discretionary powers into the approval process.

Demands for Transparency and Digital Integration

To ensure the success of this reform, GTRI has proposed several critical measures to reduce uncertainty for both domestic and international manufacturers:

  • Defined Timelines: The committee should adopt a fully digital application and tracking system with a mandate to decide applications within a 60–90 day window.
  • Clear Eligibility Criteria: Detailed guidelines must be issued regarding documentation requirements, evaluation methodologies, and a formal mechanism for appealing rejected applications.
  • Data Disclosure: GTRI recommended that DPIIT periodically publish anonymised data on applications received, approval rates, average processing times, and specific reasons for rejections.

Furthermore, the think tank noted a significant limitation: only companies incorporated under the Companies Act, 2013, are eligible. This implies that foreign manufacturers can only utilize the scheme if they have a registered Indian representative company, a factor that might discourage some overseas firms from entering the Indian market.

Key Takeaways

  • New Compliance Pathway: The Transition Facilitation Order, 2026, offers an alternative to traditional BIS certification for 10 product categories to reduce inspection delays.
  • Administrative Concerns: Experts warn that the inter-ministerial committee's focus on localisation and industrial policy could turn a technical process into a complex "QCO Plus" administrative hurdle.
  • Need for Structure: For the reform to succeed, GTRI emphasizes the need for transparent, digital, and time-bound (60-90 days) approval processes with clear appeal mechanisms.