The Global Trade Research Initiative (GTRI) has urged the Department for Promotion of Industry and Internal Trade (DPIIT) to issue detailed operational guidelines for the government's newly notified quality certification mechanism, according to PTI. GTRI Founder Ajay Srivastava emphasized that the success of the reform will depend on transparent implementation and time-bound approvals. Srivastava stated that DPIIT should issue detailed guidelines covering eligibility criteria, documentation requirements, evaluation methodology and timelines for processing applications, with decisions based on transparent and measurable parameters to ensure consistency and reduce uncertainty for industry. He also suggested that the committee adopt a fully digital application and tracking system with defined service-level timelines, preferably deciding applications within 60-90 days, and recommended a mechanism for appeal or review of rejected applications.
The Centre has introduced a risk-based compliance mechanism to ease industry compliance with Quality Control Orders (QCOs), allowing eligible manufacturers to follow a simplified certification route while maintaining product quality and consumer protection. According to reports from PTI, the new framework has been notified through the Transition Facilitation (Quality Control) Order, 2026, amid concerns raised by several industries over difficulties in obtaining Bureau of Indian Standards (BIS) certification under existing quality control norms. As per Business Standard, the department has created an alternative compliance pathway under selected ten Quality Control Orders (QCOs), including toys, personal protective equipment, air conditioners and compressors, footwear, furniture, hinges, domestic electrical appliances and household electrical safety products.
Under the new mechanism, domestic manufacturers will be allowed to source supplies from companies holding licences under Scheme II of the Bureau of Indian Standards (Conformity Assessment) Regulations, 2018, instead of requiring suppliers to have Scheme I (ISI Mark) certification. As reported by the Department for Promotion of Industry and Internal Trade (DPIIT), the order introduces an alternative risk-based compliance mechanism to facilitate a smooth transition for industry while maintaining quality assurance and consumer protection. According to Business Standard, applications will be examined by an Implementation Committee chaired by DPIIT and comprising representatives from BIS, the Department of Commerce, the Department of Consumer Affairs, the Directorate General of Foreign Trade and other ministries. The reform seeks to address longstanding concerns over delays in obtaining mandatory BIS certification, which industries have said has made compliance under Quality Control Orders increasingly difficult.
Scheme II is a BIS registration system that allows manufacturers to supply products based on self-declaration of compliance with Indian standards, whereas Scheme I requires factory inspections, surveillance and the grant of an ISI Mark licence by BIS. According to the DPIIT, this change represents a significant shift from the previous mandatory inspection requirements to a more streamlined self-declaration process for eligible manufacturers. However, as noted by Business Standard, only companies incorporated under the Companies Act, 2013 are eligible to apply under this mechanism, which may discourage most foreign firms from using the scheme. GTRI has pointed out that this means only foreign manufacturers with an Indian representative company registered under the Companies Act can use the scheme, which may discourage many overseas firms from participating in the new framework.
The reform seeks to address longstanding criticism that India's quality-control regime has become increasingly difficult to comply with because of delays in obtaining mandatory Bureau of Indian Standards (BIS) certifications. However, GTRI has raised significant concerns about the new framework, stating that only foreign manufacturers with an all India representative firm registered under India's Companies Act can apply, which may discourage most foreign firms from using the scheme. As per PTI, GTRI has warned that the new mechanism could replace one regulatory hurdle with another if implementation is not simplified. GTRI Founder Ajay Srivastava noted that instead of waiting for BIS factory inspections, manufacturers must now obtain approval from an inter-ministerial government committee exercising broad discretionary powers, effectively transforming India's quality-control regime into a 'QCO Plus' system that extends beyond conformity assessment to issues such as localisation, supply-chain development and broader industrial policy considerations. GTRI has also recommended that DPIIT periodically publish anonymised data on applications received, approvals granted, average processing time and reasons for rejection to improve transparency.
