MC EXCLUSIVE Govt may go slow on further quality control order withdrawals: Officials

A total of 143 QCOs covering 723 products have been notified by various ministries, as of December 31, 2025.

• Government unlikely to withdraw more quality control orders soon
• Focus remains on high quality goods for domestic use and exports
• QCI to launch 'Q Mark' and new accreditation platform for MSMEs

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After withdrawing 14 quality control orders (QCOs) across three sectors, the central government is likely to go slow on further withdrawals, as the priority is on ensuring that high quality goods are manufactured for domestic consumption as well as exports, two senior government officials told Moneycontrol.

"We have withdrawn 14 QCOs already. It is unlikely that any new QCO will be withdrawn anytime soon," an official said. In November, 14 QCOs on key chemical polymer and certain fibre-based materials were rescinded.

Withdrawing QCOs is key strategy to address concerns of other countries around non-tariff barriers as India negotiates free trade agreements (FTAs) with advanced economies. In 2025, nine FTAs were signed, which included the pacts with UK and EU.

"There is an internal suggestion to pause issuing new QCOs on raw materials, but we can’t compromise with quality. We will evaluate on a case-to-case basis," the second official told Moneycontrol, adding that the government is, however, working on changing the way quality inspections are carried out.

As of December 31, 2025, a total of 143 QCOs, covering 723 products, have been notified by various ministries. This is more than three times the coverage of 214 products in 2019.

Niti Aayog’s suggestions

A NITI Aayog panel in October had recommended to pause the upcoming QCOs on raw materials and capital goods, along with restricting new QCOs only to products that pose direct safety or environmental risks. The capital goods recommendations included industrial machinery, electrical equipment and engineering components covered under the Omnibus Technical Regulation, issued by the Ministry of Heavy Industries.

The report had suggested that any new QCO should first be reviewed by the Inter-Ministerial Group (IMG), as their premature rollout could increase compliance burdens on manufacturers and MSMEs , as well as slow down investment in clusters dependent on imported intermediaries.

However, the government feels that pausing QCOs or allowing raw materials to flow into the country without adequate quality checks will compromise on quality, and will hurt India’s exports.

On February 23, Minister of Commerce and Industry Piyush Goyal had said that the only way India can become globally competitive is through producing high quality goods and services. "India's exports will get a boost from FTAs, subject to high quality produce," Goyal had said.

The Economic Survey 2026 has also upheld QCOs as vital tools for mitigating reputational risks linked to inconsistent quality. It proposed a ‘forward-looking’ QCO framework focused on rigorous pre-notification assessments, calibrated transition timelines, and adequate expansion of national testing and certification infrastructure.

Reforming quality inspection process

The government is working on reforming the certification scheme of the Bureau of Indian Standards (BIS), said one official. The BIS currently operates 10 certification schemes to ensure the quality, safety, and reliability of products in India.

These schemes are primarily divided based on the type of product, the nature of the manufacturing process, and whether the certification is voluntary or mandatory. For instance, the ISI mark is one of the most recognised certifications in India, issued by BIS, which is applied on LPG cylinders, electrical appliances, cement and steel, etc.

The NITI Aayog report had suggested rationalisation and consolidation of the existing 10 certification schemes into two principal ones - Scheme I for general products, which will be the default and primary enforcement mechanism for all new items, and Scheme II for high-risk products.

Quality Council of India standards

On December 24, the Quality Council of India (QCI) had announced a comprehensive set of next-generation quality reforms aimed at strengthening India’s quality ecosystem across healthcare, laboratories, MSMEs and manufacturing sectors.

The QCI had unveiled the 'Q Mark', a QR-coded Mark of quality designed to enhance transparency, trust and citizen awareness. The initiative will allow citizens to verify the quality credentials of laboratories, hospitals and MSMEs, while helping eliminate fake certificates, the agency had said in a statement.

QCI is also going to roll out a single, paperless and modular one-stop accreditation platform to replace multiple existing portals. It will also train 1 lakh MSMEs and Self-Help Groups in quality, packaging and branding in 2026.

Saurabh Agarwal, Tax Partner, EY India, said: "The way forward should be a risk‑based approach. Mandatory QCOs can be retained in sectors where non‑compliance poses clear risks to health, safety, or the environment. At the same time, QCOs on industrial inputs may be revoked or suspended in cases where QCOs are applicable on the finished products reaching the end consumers."