Why in the News?
A NITI Aayog panel has proposed easing India’s Quality Control Orders (QCOs) by simplifying certification, assessments, and inspections to support MSMEs amid domestic and global criticism.
About Quality Control Orders (QCOs):
- Overview: Issued under the Bureau of Indian Standards (BIS) Act, 2016, QCOs make Indian Standards compulsory for specific products in public interest (health, environment, security, fair trade).
- Voluntary vs. Mandatory: Normally BIS certification is voluntary, but under QCOs manufacturers/importers must obtain a BIS licence or Certificate of Conformity before production, imports, or sales.
- Standard Mark: Products under QCOs carry the ISI mark (or Hallmark for jewellery) to indicate conformity.
- Legal Backing: Governed by BIS (Conformity Assessment) Regulations, 2018; violation punishable with fines or imprisonment.
- Imports: Applies equally to foreign manufacturers via the Foreign Manufacturers Certification Scheme (FMCS).
- Coverage: Of ~23,000 BIS standards, only 187 QCOs covering 770 products exist; 84 QCOs covering 343 products issued in the last three years.
- Example: QCOs for compressors & ACs (2023) boosted compressor output from <2 million (2021–22) to 8 million (2023–24); ACs to 12 million+ units.
Challenges Related to QCOs:
- High Costs: Certification involves inspections, documents, and assessments—burdening MSMEs.
- Non-Tariff Barrier Issues: US, EU, UK, NZ claim India’s QCOs exceed global norms. USTR (2025) flagged BIS marks even for chemicals, requiring site visits.
- Industry Pushback: MSMEs fear inflationary costs; imports of cheaper raw materials/components restricted.
- Limited Enforcement: Only 187 of 23,000 standards notified, mainly steel, electronics, chemicals.
- Implementation Delays: Licence approvals slow; procedures disrupt production and supply chains.
- Conflicting Views: Some MSMEs benefit (e.g., Birla Aircon turnover jumped ₹7 crore to ₹42 crore after QCO on water coolers), others call it “malign intervention” (NITI Aayog VC Suman Berry).
Steps Taken by Government:
- Digitisation: Simplified certification covering 750+ products; licences granted in 30 days.
- MSME Outreach:
- Jan Sunwai: Online open-house thrice weekly.
- Manak Manthan: BIS field initiative for MSME support.
- Regional Conferences: Led by Department of Consumer Affairs to resolve issues.
- Capacity Building: Of 50,753 BIS certifications, ~40,000 (≈80%) issued to MSMEs; 24,625 voluntarily obtained for credibility/exports.
- Trade Readiness: Govt projects QCOs as tools to raise quality and global competitiveness.
- WTO Consistency: Justified if linked to health, safety, environment, deceptive trade, or security, in line with WTO Technical Barriers to Trade (TBT) Agreement.
| [UPSC 2017] With reference to `Quality Council of India (QCI)’, consider the following statements:
1. QCI was set up jointly by the Government of India and the Indian Industry. 2. Chairman of QCI is appointed by the Prime Minister on the recommendations of the industry to the Government. Which of the above statements is/are correct? Options: (a) 1 only (b) 2 only (c) Both 1 and 2* (d) Neither 1 nor 2 |
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