QUALITY CONTROL ORDERS (QCOs) IN INDIA – ARE YOU GOING TO BE IMPACTED?
What are the objectives of Quality Control Orders (QCOs)?
- Producing High quality products: By implementing QCOs, the government aims to bolster India's position in the global manufacturing market, while simultaneously enforcing stringent quality standards to elevate consumer product safety. Moreover, this initiative is crucial in curbing the circulation of sub-standard products within the Indian market, thus safeguarding consumer interests. Beyond enhancing product quality and safety, the enforcement of QCOs is expected to catalyze investment inflows into the manufacturing sector.
- Foster Innovation and Technological Advancement: The initiative not only fosters economic growth but also facilitate an environment conducive to innovation and technological advancement. Additionally, by preventing the proliferation of inferior products, the risk of potential loss of life or accidents associated with sub-standard goods is mitigated.
- Increasing Manufacturing GDP contribution: Manufacturing sector contributes 17% of the nation’s GDP and with vision of contribution of 25% of the nation’s GDP in 2025, it is imperative to enhance quality standards of goods produced. These QCOs are meticulously designed to fortify the quality benchmarks of ‘Made in India’ products while ensuring that a diverse range of goods remains accessible to the Indian consumer base.
What are the challenges and road ahead for enterprises?
Following the implementation of Quality Control Orders (QCOs) for relevant products, the government is set to impose strict regulations disallowing the importation of non-certified goods by companies. Consequently, any attempt to sell non-certified products within India will be met with a resolute ban, reinforcing the imperative for compliance with QCOs, creating challenges which would be difficult to overcome in short term.
To address the challenges foreseen with the implementation of QCOs, companies should:
- Initiate BIS certification procedure for their manufacturing facilities and understand the cost, timelines and transparency associated with the approvals
- Have continuous monitoring of QCOs launched and assess possible impacts on the import and sale of products within India
- Evaluate the local manufacturing (Local Manufacturing Setup, Completely Knocked Down (CKD) / Semi Knocked Down (SKD), IP transfer and Contract Manufacturing) possibilities meeting requirements of domestic value addition under manufacturing.
EAC has been closely monitoring the issuance of Quality Control Orders (QCOs) and has supported its MNC clients to understand and implement the suitable / apt roadmap post introduction of QCOs with comprehensive study on CKD/SKD, IP Transfer, Contract manufacturing, Local investment requirement based on their product business and applicable norms requirement and is equipped to foresee changes which are yet to impact companies.
For further insights and guidance on navigating the implications of Quality Control Orders (QCOs) and ensuring compliance tailored to your specific product business, kindly reach out to our experts EAC team members: Hitesh Khandelwal, Rituraj Shailendra, and Ketan Jadhav. We are committed to assisting your company in adapting effectively to regulatory changes and maximizing opportunities for growth and success.
