India’s Quality Control Orders: GTRI Calls for Broad Review
By Business Desk
GTRI urges a comprehensive review of India’s Quality Control Orders, citing concerns over inflated costs, trade barriers, and impact on MSMEs and consumers.
Global Trade Research Initiative (GTRI) has called for a comprehensive review of India’s Quality Control Orders (QCOs). The organization argues that mandatory quality certification under these regulations inflates costs and negatively impacts Micro, Small, and Medium Enterprises (MSMEs).
This mandatory certification also contributes to higher product prices for consumers. GTRI advocates for a broader reform of the current QCO regime.
Understanding Quality Control Orders
In India, **Quality Control Orders** mandate specific product certification before items can be sold or imported. This primarily involves obtaining certification from the Bureau of Indian Standards (BIS).
The aim is to ensure product quality, but the process has drawn criticism for its operational impact. Japanese manufacturers, for instance, have expressed concerns regarding its implementation.
GTRI’s Concerns: Cost and Competitiveness
GTRI highlights several adverse effects stemming from the current QCO framework. These issues directly impact businesses and the broader economy.
The mandatory certification process imposes significant financial burdens. This leads to increased expenses for manufacturers and importers.
- Inflated operational costs for businesses.
- Adverse impacts on **MSMEs**, which struggle with compliance expenses.
- Higher product prices for the end consumer.
Potential Global Trade Barriers
The organization warns of a potential future scenario if other nations adopt similar stringent measures. Such reciprocity could severely burden Indian exporters.
Indian businesses might then be forced to obtain multiple country-specific certifications for their products. This would create new hurdles in international trade.
- Increased export expenses due to multiple certifications.
- Significant delays in **shipment schedules**.
- Reduced competitiveness for Indian goods in global markets.
While the **Commerce and Industry Minister** proposed easing certification for high-tech industries, GTRI believes a wider review of the entire QCO system is necessary to mitigate these challenges.