Effective with the notification of the Transition Facilitation (Quality Control) Order, 2026, the Department for Promotion of Industry and Internal Trade (DPIIT) has introduced an alternative compliance pathway under 10 Quality Control Orders (QCOs), but trade policy think tank Global Trade Research Initiative (GTRI) has warned that success hinges on transparent, time-bound implementation, according to a report by PTI.
What Changed — The New Quality Certification Regime
DPIIT notified the Transition Facilitation (Quality Control) Order, 2026, creating an alternative compliance pathway under selected 10 QCOs covering products such as:
- Toys
- Footwear
- Furniture
- Air conditioners
- Compressors
- Personal protective equipment
- Hinges
- Domestic electrical appliances
- Household electrical safety products
Applications under the new mechanism will be examined by an Implementation Committee chaired by DPIIT, with representatives from the Bureau of Indian Standards (BIS), Department of Commerce, Department of Consumer Affairs, Directorate General of Foreign Trade (DGFT) and other ministries.
Who Is Affected — Scope of Application
According to GTRI, only companies incorporated under the Companies Act, 2013 are eligible to apply under the new mechanism. This means that foreign manufacturers must have an Indian representative company registered under the Companies Act to use the scheme. GTRI noted that this eligibility restriction may discourage many overseas firms from participating.
Compliance Obligations and Timelines
GTRI Founder Ajay Srivastava said DPIIT should issue detailed operational guidelines covering eligibility criteria, documentation requirements, evaluation methodology and timelines for companies seeking approvals. He recommended that the committee adopt a fully digital application and tracking system with defined service-level timelines, preferably deciding applications within 60-90 days. Srivastava also suggested a mechanism for appeal or review of rejected applications to enhance confidence in the system.
Implementation Challenges — 'QCO Plus' System
Srivastava warned that the new mechanism could replace one regulatory hurdle with another if implementation is not simplified. “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,” he said. Because the committee's assessment extends beyond technical conformity to issues such as localisation, supply-chain development and industrial policy, the new framework effectively transforms India's quality control regime into a "QCO Plus" system, Srivastava added.
Recommendations for Transparency
GTRI also recommended that DPIIT periodically publish anonymised data on applications received, approvals granted, average processing time and reasons for rejection to improve transparency. Another expert noted that the effectiveness of the reform would ultimately depend on the implementation framework, stating 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.”
Industry stakeholders should closely monitor DPIIT's forthcoming operational guidelines. The transition facilitation order aims to ease dependence on BIS factory inspections, but the discretionary powers of the inter-ministerial committee and the eligibility restrictions may create fresh compliance hurdles, particularly for foreign manufacturers without a local presence.
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