Need to strengthen standards regime, says Sitharaman

Says days of differential standards, relatively higher standards for export products and lower for those used for domestic consumption, are over

India needs to strengthen the domestic standards regime for products so as to ensure safety of citizens and stop spurious imports flooding the market, Commerce and Industry Minister Nirmala Sitharaman said on Thursday.

Speaking at the 3rd edition of the Standards Conclave organised by the Commerce Ministry and the Confederation of Indian Industry, Sitharaman said expanding the scope of mandatory product standards is a priority area for the government.

She added the days of differential standards - relatively higher standards for export products and lower for those used for domestic consumption, are over.

Aiming to control the quality of manufactured goods, standardisation provides safe and reliable products. Pushing hard to strictly institute product standards, the Commerce ministry is looking to identify all products which endanger the safety, security, environmental and heath of human beings.

According to information from the commerce ministry, an inter ministerial committee has now listed 137 products on which mandatory standards will be applied on a priority basis, apart from products in food, electronics and steel categories.

While the country currently does not have a general legislative framework to notify standards for mandatory compliance, apex body Bureau of Indian Standards (BIS) uses the BIS Act, 1986 to notify standards. The act was amended earlier this year to beef up regulatory procedures and streamline the certification process.

The BIS needs to catch up with product developments in a number of sectors, the minister said. These remarks assumes significance amid concerns being raised by the domestic industry on rising imports of sub- standard quality products from countries like China.

Although a few sectors such as pharmaceuticals have set up high standards for themselves, other sectors have yet to follow suit, Sitharaman said. However, she added that high tariffs or quantitative restrictions would be detrimental to domestic industries but high benchmarks should be present all the same.

Commerce Secretary Rita Teaotia said academia need to seriously focus on research and development of product standards. Simply adopting global standards would be insufficient in the Indian scenario, she added. On services standards, the government has identified three services - tourism, healthcare and education to analyze the scope of standards, the official said. However, since the delivery system for most services involves a large number of stakeholders, slow progress is expected, she added.

Commenting on the stalled India-EU free trade agreement, Sitharaman said the government was waiting for the EU to respond with dates, which have not been forthcoming because of the looming threat of Britain leaving the European Union.

"We are waiting for the dates. It is my doubt that if because they are waiting for the outcome of Brexit, they have not yet given the dates as yet. The moment they give the dates, we will be keenly wanting to continue the talks to reach the conclusion at the earliest," she added.

The result of the brexit vote, which took place on Thursday is expected early on Friday. Launched in June 2007, the negotiations for the proposed agreement have witnessed many hurdles with both sides having major differences on crucial issues like intellectual property rights, duty cut in automobile and spirits, and liberal visa regime.

The pact is aimed at reducing or significantly eliminating tariffs on goods, facilitating trade in services and boosting investments between the two sides.