BS EDIT: Are QCOs hurting India’s manufacturing growth?

A pragmatic trade strategy

The government is enhancing FTAs to integrate India into global value chains, but rising Quality Control Orders (QCOs) are adding non-tariff barriers

What are QCOs?

QCOs require BIS certifications to protect consumers but also aim to curb Chinese imports and promote domestic manufacturing

Steel: A case study

QCOs on steel disrupt manufacturing, raising input costs, causing delays, and reducing competitiveness for Indian exporters needing speciality imports

Small biz hit hardest

MSMEs face QCO hurdles due to small orders, unlike larger firms. Result: higher costs, inferior inputs, and stunted growth for small businesses

Labour-intensive sectors at risk

QCOs hike costs for industries like textiles by fostering local monopolies, eroding India's edge in labour-intensive, tradeable goods

Reform without regress

The QCO regime threatens India's reform gains, harming productivity and confidence. A targeted, transparent approach is vital for balancing quality and growth