India's QCO Reset: Aligning Standards with Lab Capacity, Easing Trade Friction
India Resets QCO Roadmap, Links Standards to Lab Readiness

In a significant policy shift, the Indian government is undertaking a major reset of its Quality Control Order (QCO) framework. The new strategy aims to realign mandatory quality standards with the country's actual laboratory and testing capacity while addressing concerns raised by key trading partners at the World Trade Organization (WTO).

The Strategic Recalibration

This move represents one of the most comprehensive overhauls of India's quality regime since the QCO framework began its rapid expansion post-2014. Initially, the government had set an ambitious target to bring between 2,000 and 2,500 products under mandatory quality norms. For the fiscal year 2025-26 alone, officials had planned to notify over 700 additional products under QCOs.

The recalibration follows a series of QCO withdrawals in recent months. On 13 November 2025, the government withdrew 14 QCOs in a single move, largely covering polyester and petrochemical inputs. This offered relief to user industries like apparel and footwear. Earlier, on 23 July 2025, QCOs for three key industrial chemicals—acetic acid, methanol, and aniline—were withdrawn. Subsequent withdrawals on 1 December brought the total number of products regulated under QCOs down to 736, from a peak of 761.

Drivers of the Policy Rethink

The policy rethink was conceptualized as early as December 2024. It gained momentum after a NITI Aayog committee, chaired by former cabinet secretary Rajiv Gauba, recommended relaxing certain QCOs that were raising costs for Micro, Small, and Medium Enterprises (MSMEs) dependent on imported raw materials.

Internationally, countries including the US, EU, Japan, South Korea, and ASEAN members have raised concerns at the WTO. They cited short notice periods, limited consultation, and insufficient risk assessments for several Indian QCOs. A US Trade Representative report in April 2025 specifically flagged the regime as a trade concern, arguing some standards disrupt plastics and chemical trade.

Officials, speaking on condition of anonymity, stated the recent withdrawals aimed to prevent supply disruptions in sectors like textiles, paper, and light engineering, where manufacturers rely heavily on global inputs.

The New 2026 Roadmap: Capacity and Prioritization

The reset now underway prioritizes safety-critical sectors such as electrical appliances, toys, medical devices, and select chemicals. For other categories, a more measured, phased rollout is planned.

A key driver is the gap between the Bureau of Indian Standards' (BIS) mandate and India's laboratory capacity. Several government labs face equipment shortages, uneven accreditation, and limited geographic coverage. For 2026, BIS and the Department of Consumer Affairs are creating a capacity map that will link each new QCO to the availability of accredited labs within reasonable logistical distances.

The new roadmap will include mandatory pre-notification, wider exporter consultations, and clearer criteria for introducing QCOs. Future compliance timelines will be backed by adequate domestic testing infrastructure and realistic transition windows.

Industry Reaction and Expert Views

Industry players have welcomed the more targeted approach. Manoj Tulsian, CEO of GreenPly Industries, noted that the QCO on plywood helped check substandard imports and created a level playing field for domestic manufacturers.

In the electronics sector, Abhishek Malik of Calcom Vision said greater flexibility around components allows for faster design cycles, while integrating certification earlier ensures smoother market readiness.

Vivek Singhal, CEO of Bidso, emphasized that easing controls on raw materials like plastics lowers input costs, but strong BIS norms for finished toys remain essential for safety. He cited BIS data showing 91% compliance under the Toys QCO, 2020.

Policy experts caution that QCOs remain central to India's long-term quality strategy. Jaijit Bhattacharya, founder of C-DEP, stated that while the process is being tweaked, mandatory standards are necessary for India to become a developed economy, mirroring approaches in the US, Europe, Japan, and China.

The government continues to signal its commitment to quality. On 21 November 2025, it notified 12 new Indian Standards covering cybersecurity, digital infrastructure, wind energy, and homoeopathic preparations, aimed at replacing outdated specifications by April 2026.

This recalibrated roadmap represents a coordinated attempt to align standards ambition with institutional readiness. By linking enforcement to lab capacity and improving notification processes, the government aims to reduce trade friction, avoid implementation gaps, and provide predictable compliance pathways, keeping quality at the centre of India's manufacturing and consumer protection goals.