In a move aimed at easing compliance burdens for domestic manufacturers, the government has withdrawn Quality Control Orders (QCOs) for three crucial industrial chemicals: acetic acid, methanol, and aniline, according to a notification issued on 23 July. These chemicals serve as critical inputs for a wide range of industries, including pharmaceuticals, textiles, dyes and intermediates, paints, adhesives, and agrochemicals.
QCOs: A Compliance Hurdle for Industry
The QCOs, first introduced in August 2019, required manufacturers and importers to secure Bureau of Indian Standards (BIS) certification before marketing these chemicals in India. This rule had posed significant cost and operational challenges, especially for small and medium enterprises (SMEs), many of which depend heavily on imported raw materials. India sources significant volumes of acetic acid and aniline from China and the US, while methanol is primarily imported from Gulf nations.
Industry Welcomes Regulatory Relief
By removing the requirement for compulsory BIS standards, the withdrawal of QCOs effectively eliminates a non-tariff barrier that the industry had long considered restrictive. “This decision provides much-needed breathing space for SMEs grappling with certification costs and supply disruptions,” said Vinod Kumar, President of the India SME Forum.
Balancing Quality Enforcement and Ease of Doing Business
The decision follows consultations with the BIS and signals a softer stance by the government to support manufacturing, even as India pursues an aggressive drive to expand quality controls across sectors. Globally, protectionist barriers are rising, and India itself plans to bring over 1,500 products under stringent BIS quality norms by 2025–26.
Trade Data Highlights Import Dependence
According to World Integrated Trade Solution (WITS) data for 2023:
*Acetic acid imports: $12 million from the US and $186 million from China
*Aniline and salts imports: $2.79 million from the US and $21.6 million from China
Livemint.com reports that easing quality norms will stabilize supply chains and reduce operational bottlenecks for industries reliant on these key raw materials.
