In a significant move to streamline its regulatory framework, the Indian government has informed the World Trade Organization (WTO) that it has withdrawn a total of 49 Quality Control Orders (QCOs). This decision, communicated on 8 January 2026, signals a strategic shift in the country's approach to quality regulations for industrial products.
Details of the Regulatory Rollback
The withdrawal process, which began in July 2025, spans multiple government ministries. The Department of Chemicals and Petrochemicals led the rollback, rescinding 38 QCOs covering 39 products. Other ministries followed suit, with the Ministry of Mines withdrawing seven QCOs and the Ministry of Textiles withdrawing two.
According to the official WTO document, of the 49 QCOs addressed, 47 have been formally rescinded. One QCO covering 55 steel products has been suspended, and another on electrical equipment has been deferred. The action follows the recommendations of a high-level committee on non-financial regulatory reforms, chaired by Niti Aayog member and former cabinet secretary Rajiv Gauba.
The Rationale Behind the Reforms
The committee's second report specifically examined QCOs and their impact on industry. It advocated for rationalization and a more phased implementation strategy. The panel highlighted critical concerns, including inadequate testing infrastructure, short implementation windows, and the potential for severe supply chain disruptions if large volumes of industrial intermediates were suddenly subjected to strict compliance.
The committee argued that while quality regulation is essential, intermediate goods require a more calibrated approach than final consumer products. It recommended prioritizing sectors where safety is directly impacted and allowing industries a predictable transition path for other categories. This approach is particularly aimed at reducing the regulatory burden on Micro, Small, and Medium Enterprises (MSMEs).
Industry Reaction and Future Outlook
Industry representatives have welcomed the move as a necessary correction. Vinod Kumar, President of the India SME Forum, stated that the review was needed as several QCOs were rolled out faster than the industry's ability to comply. He emphasized that sequencing standards with testing capacity is critical to avoid supply disruptions and cost pressures, especially for smaller firms.
However, some experts caution about the pace of change. Ajay Srivastava, co-founder of the Global Trade Research Initiative (GTRI), noted that while the correction was overdue, the abrupt withdrawal of around a quarter of the QCOs imposed since 2017 risks creating regulatory instability. He warned that the shift from regulatory overreach must not lead to unpredictability for affected industries.
A senior government official clarified that the withdrawals do not signify a dilution of the focus on quality. Instead, they represent a shift towards a more phased and sector-specific approach. The official indicated that revised or updated QCOs are likely to be reintroduced once domestic manufacturing capacity and international alignment improve. This recalibration aims to balance the imperative of product quality with the need to foster a conducive business environment and bolster India's manufacturing competitiveness.
