Industry associations and experts have welcomed the government’s decision to withdraw fourteen Quality Control Orders (QCOs) on key chemical, polymer, and fibre-based materials. They described the move as a “landmark reform” that will streamline approvals, speed up procedures, and boost ease of doing business across the textile, plastic, and chemical sectors.
On November 12, the government rescinded QCOs covering several key intermediates, including Terephthalic Acid, Ethylene Glycol, Polyester Yarns and Fibres, and major plastics such as Polypropylene, Polyethylene, PVC, ABS, and Polycarbonate.
What QCOs Mean for Industry
A QCO is a legal directive issued by a Ministry that makes compliance with a specific Indian Standard (IS) mandatory. Products under a QCO must obtain a BIS licence and carry the standard mark, such as the ISI mark, before they can be manufactured, imported, or sold in India.
Move Aims to Support MSMEs and Improve Raw Material Access
The Ministry of Chemicals and Fertilizers announced that this decision aims to ensure raw material availability, reduce import bottlenecks, and lower input costs for downstream MSMEs in packaging, textiles, and moulding. According to officials, the change will help companies operate with greater flexibility and fewer compliance delays.
Experts Say Withdrawal Strengthens Ease of Doing Business
Sohrab Bararia, Partner at Grant Thornton Bharat, noted that removing BIS requirements for fourteen key products is a major step toward reducing regulatory friction. “From a customs standpoint, this measure will streamline import procedures, accelerate clearances, and minimise delays, penalties, and supply chain disruptions,” he said.
The Confederation of Indian Textile Industry (CITI) also welcomed the decision. The association said the withdrawal of QCOs on Polyester Fibre and Polyester Yarn provides major relief to user industries. It added that the change will improve the cost competitiveness of Indian textile and apparel products by allowing access to raw materials at globally competitive prices. “Coupled with the Export Package announced on November 12, this move will act as a strong confidence-booster for the sector,” CITI said.
Reform Aligns with NITI Aayog’s Recommendations
Saurabh Agarwal, Partner at EY India, said the decision aligns with NITI Aayog’s recommendations to simplify regulations and promote industry-led quality standards. He noted that the withdrawal enables faster operations, encourages innovation, and strengthens India’s position in global value chains for chemicals, plastics, and textiles.
The move also reflects the findings of a High-Level Committee on Non-Financial Regulatory Reforms, which highlighted the rapid expansion of QCO coverage—from fewer than 70 products to nearly 790 in the past decade. Many of these standards applied to raw materials that do not pose direct risks to consumers, prompting calls to limit mandatory norms to safety-critical or consumer-facing items.
Need for Vigilance on Import Quality
Even as the government withdraws QCOs, experts stressed the need for close monitoring. Ajay Srivastava, Co-founder of the Global Trade Research Initiative (GTRI), warned that India must track import trends carefully to prevent the entry of dumped or sub-standard materials. He pointed out that global suppliers may attempt to push excess stock at predatory prices.
Srivastava recommended real-time tracking of customs data, DGTR alerts, and landed-price movements. Such monitoring would help authorities act quickly through anti-dumping duties, safeguard measures, or tariff-rate interventions if unfair trade practices emerge. He added that this approach protects domestic industry without reducing the benefits of the reform.
India Moves Closer to Global Standards
According to Srivastava, rolling back certain QCOs brings India closer to international regulatory norms. Major economies do not impose mandatory national certification on industrial inputs such as metals or polymers. “By withdrawing QCOs that create friction rather than ensure safety, India is aligning its quality-control regime with global practice,” he said.
Trade Talks Reflect Push for Simplification
The reform also ties into India’s ongoing trade negotiations. During the eleventh round of talks for the proposed India–EU Free Trade Agreement in May 2025, the European Union raised concerns about the complexity of India’s QCO certification process. India indicated that improvements, including online applications, could be introduced.
As reported by moneycontrol.com, India is currently negotiating several major trade agreements with developed economies and blocs, including the United States and the European Union. The country also signed an agreement with the United Kingdom in July this year.
