GTRI urges DPIIT to issue detailed guidelines for new quality certification

The DPIIT should issue detailed operational guidelines specifying the eligibility criteria, documentation requirements, and timelines for processing applications for companies seeking product quality certification under the new transition facilitation mechanism, think tank GTRI said on Saturday.

On June 25, the Department for Promotion of Industry and Internal Trade (DPIIT) notified the Transition Facilitation (Quality Control) Order, 2026.

As per the orders, the department has created an alternative compliance pathway under selected ten Quality Control Orders (QCOs), including toys, personal protective equipment, air conditioners and compressors, footwear, furniture, hinges, domestic electrical appliances and household electrical safety products.

The applications will be examined by an Implementation Committee chaired by DPIIT and comprising representatives from BIS, the Department of Commerce, the Department of Consumer Affairs, the Directorate General of Foreign Trade and other ministries.

 

The reform seeks to address longstanding criticism that India's quality-control regime has become increasingly difficult to comply with because of delays in obtaining mandatory Bureau of Indian Standards (BIS) certifications.

However, the GTRI said, only companies incorporated under the Companies Act, 2013 are eligible to apply under this mechanism.

So only those foreign manufacturers who have an all India representative firm registered under India's Companies Act can apply, the Global Trade Research Initiative (GTRI) said adding this will discourage most foreign firms from using the scheme.

"The reform is expected to reduce one of the biggest operational problems facing India's QCO regime by easing dependence on BIS factory inspections. But critics are likely to argue that it merely replaces one regulatory hurdle with another," GTRI Founder Ajay Srivastava said.

Instead of waiting for BIS factory inspections, manufacturers must now obtain approval from an inter-ministerial government committee exercising broad discretionary powers, he said.

He added that because the committee's evaluation extends beyond conformity assessment to issues such as localisation, supply-chain development and broader industrial policy considerations, the new framework effectively transforms India's quality-control regime into a "QCO Plus" system.

Srivastava said that the success of the new framework will depend on how efficiently and transparently the Implementation Committee functions.

"DPIIT should issue detailed operational guidelines specifying the eligibility criteria, documentation requirements, evaluation methodology and timelines for processing applications," he said, adding decisions should be based on transparent and measurable parameters to ensure consistency and avoid uncertainty for industry.

He also said that the committee should adopt a fully digital application and tracking system with defined service-level timelines, preferably deciding applications within 6090 days.

"A mechanism for appeal or review of rejected applications would further enhance confidence in the system," he said.

The GTRI further suggested that the department should periodically publish anonymised data on applications received, approvals granted, average processing time and reasons for rejection.

It added that as the Transition Facilitation Order is presented as a deregulatory reform, it may simply replace one bottleneck with another if these recommendations are not implemented.

Another expert said that whether the Order ultimately simplifies India's quality compliance regime or merely replaces mandatory factory inspections with an equally demanding administrative screening process will likely depend on how DPIIT structures the forthcoming implementation guidelines and how efficiently the inter-ministerial committee processes applications.

"The introduction of a committee-based approval process linked to localisation and investment commitments suggests that market access under the new regime may remain as much a matter of industrial policy as of technical conformity," Shaunak Rungta, Director at Jaipur-based Vardhan Group, said.