DPIIT eases QCO compliance with risk-based framework; industry gets flexible BIS sourcing route

The government has introduced a new compliance framework aimed at easing industry concerns over Quality Control Orders (QCOs) while preserving product quality and consumer protection standards.

The Department for Promotion of Industry and Internal Trade (DPIIT) on Thursday notified the Transition Facilitation (Quality Control) Order, 2026, creating an alternative risk-based compliance mechanism that allows eligible manufacturers greater flexibility in sourcing inputs and components.

The move comes amid industry feedback on difficulties in obtaining Bureau of Indian Standards (BIS) certifications required under an expanding QCO regime. Once implemented, it is expected to provide compliance flexibility to manufacturers across QCO-intensive sectors such as toys, personal protective equipment, air conditioners and footwear.

QCOs have emerged as a key pillar of India's quality infrastructure strategy, with the government increasingly mandating standards compliance across sectors to improve product reliability, safeguard consumers and boost the competitiveness of domestic manufacturing.

Alternative compliance route for industry

Under the new framework, domestic manufacturers will be permitted to procure supplies from companies holding BIS licences under Scheme II of Schedule II of the Bureau of Indian Standards (Conformity Assessment) Regulations, 2018, instead of relying solely on suppliers certified under Scheme I, the traditional ISI Mark certification route.

The distinction is significant. While Scheme I requires factory assessments, surveillance audits and a formal BIS licence carrying the ISI Mark, Scheme II operates through a registration-based system under which manufacturers can supply products based on self-declaration of conformity to Indian standards.

Industry stakeholders have argued that obtaining Scheme I certification can be time-consuming and may disrupt supply chains, particularly in technology-intensive sectors dependent on specialised components.

Benefits linked to compliance track record

According to DPIIT, approvals under the new mechanism will be granted on the basis of technical capability, compliance history and demonstrated commitment to technology adoption, innovation, research and development, design capabilities and domestic supply-chain strengthening.

The order also extends benefits to manufacturers that have maintained an uninterrupted record of compliance with QCO requirements for three years without any default, rewarding companies with a proven adherence to quality standards.

"The reform seeks to facilitate industry compliance while maintaining quality standards," the ministry said, adding that the alternative compliance mechanism is expected to support technological modernisation, innovation and the strengthening of India's manufacturing ecosystem.

Push for resilient supply chains

DPIIT said the initiative is designed to strengthen domestic value chains, reduce compliance bottlenecks and improve India's integration with global supply chains. The ministry added that the framework would help balance regulatory oversight with industrial competitiveness while reinforcing consumer confidence in the quality and safety of products sold in the country.

At a broader level, the order signals the government's attempt to make India's quality-control regime more industry-friendly without diluting its standards-driven manufacturing agenda.