India Regulatory News

In its Second Report (October 2025), the High-Level Committee on Non-Financial Regulatory Reforms (HLC-NFRR) called for a major overhaul of India’s Quality Control Order (QCO) framework. The number of products covered by QCOs has increased from fewer than 70 products in 2016 to nearly 790 in 2025. This has resulted in growing compliance burdens, supply-chain disruptions, and increased costs especially for MSMEs and sectors that rely on imported raw materials. The Committee recommends a nationwide rationalisation of the regime to focus on areas critical to public safety while easing unnecessary controls on raw materials and intermediate goods.

Key Recommendations

• Synthetic Fibres & Yarns
  • Revoke QCOs on PTA, MEG, PSF, VSF, FDY, POY, IDY, PSY. These are upstream inputs with a low safety risk, and mandatory BIS certification inflates costs and affects export competitiveness.
• Plastics & Polymers
  • Withdraw mandatory BIS certification for PE (LDPE/LLDPE/HDPE), PP, PVC, ABS, EVA, PU, and polycarbonate. Current QCOs restrict access to specialty grades, increase resin prices, and slow supply chains.
• Base Metals
  • Revoke QCOs for upstream metals such as copper, aluminium, tin, lead, nickel powder, and precision/intermediate grades. These are industrial inputs and downstream product standards already ensure quality.
• Steel
  • Retain QCOs for construction-grade and pressure-vessel steels (critical for public safety).
  • Suspend QCOs for engineered/alloy/auto-grade steel, electrical steel, wires, ropes, and other raw/intermediate products.
  • Subject the suspended categories to Inter-Ministerial Group (IMG) review due to import dependence.
  • Revoke the Steel Import Monitoring System (SIMS) and abolish No Objection Certificate (NOC) requirements for non-QCO steel to reduce import barriers.
• Footwear & Electronics Components
  • Roll back QCOs on input materials such as engineering copper wires, solder wires, and adhesive tapes. These are not consumer-facing items, and certification limits supplier options and raises costs.
• Upcoming / Proposed QCOs
  • Defer all new QCOs, especially for raw materials, machinery, and capital goods.
  • Require routing through an IMG for risk-based assessment.

Reform Impact

• Reduced Regulatory Burden: Easing unnecessary QCO obligations will simplify compliance for businesses across India, especially MSMEs.
• Greater Supply Chain Efficiency: Flexible access to key raw materials will enable faster production cycles, reduced delays, and reduced dependency on limited suppliers.
• Enhanced Global Competitiveness: Lower costs and fewer import barriers will help Indian manufacturers become more price-competitive in international markets.
• Shift toward Smart, Risk-Based Regulation: The reforms signal a move away from volume-driven regulation toward a more quality- and safety-driven model, focusing resources where public risk is genuinely high.