According to csep.org, India’s Quality Control Orders (QCOs) have reduced imports of QCO-impacted intermediate goods by approximately 30% over a three-year period following implementation, with chemical-using firms’ exposure rising from 12% in 2019 to 56.6% by 2024.
Regulatory Expansion and Legal Framework
QCOs — mandatory product standards enforced under the Bureau of Indian Standards (BIS) Act, 2016 — derive legal authority from legislation notified on 22 March 2016 and brought into force in October 2017. The regulatory scope has expanded rapidly: from 70 covered products in 2017 to 756 by December 2024. Around 46% of these products are intermediate goods, intensifying supply-chain implications for domestic manufacturing.
Chemical Sector Impact and Supply-Chain Pressures
The chemical sector ranks as the fourth-largest sector affected by QCOs — after Metals, Machinery & Electronics, and Textiles. The first QCO targeting chemicals was introduced in 2018, and coverage grew to 52 chemical products by 2024. Empirical analysis covering 2000 to 2023 shows India’s overall imports of QCO-impacted goods declined by 24% post-implementation, while imports of QCO-impacted intermediate goods fell by 30%. This indicates substantial disruption for import-dependent chemical users across sectors including pharmaceuticals, rubber and plastic products, and electrical equipment.
Policy Adjustments and Ongoing Concerns
In 2025, the Government of India revoked or suspended several QCOs covering plastics, steel, chemicals, textiles, and critical minerals — offering temporary relief. This recalibration continued with the Transition Facilitation (Quality Control) Order, 2026, which grants eligible firms greater flexibility in meeting BIS certification requirements. However, numerous QCO-covered intermediate goods remain subject to mandatory standards, sustaining concerns about long-term effects on supply chain resilience and manufacturing competitiveness.
Source: csep.org
Compiled from international media by the SCI.AI editorial team.
