Quality Reforms Strengthen India's Manufacturing and Exports

• Quality controls on orders help ensure domestic products match export-grade standards, raising manufacturing quality.
• Streamlined compliance protects MSMEs while enforcing 191 orders covering 775 products across sectors.
• Escrow-backed incentives, streamlined laws, and swift approvals are essential for attracting manufacturing investment.

Commerce and Industry Minister Piyush Goyal emphasised that the introduction of Quality Control Orders (QCOs) has significantly bolstered India’s indigenous manufacturing base. Presented during a meeting with state commerce and industry ministers, Goyal explained that the overarching goal of these QCOs is to ensure that products manufactured for the domestic market match the high standards typically reserved for exports, eliminating a two-tier quality system where cheaper versions were sold locally.

He specifically pointed out categories such as toys and plywood, where domestic producers had been under intense pressure from cheap, sub-standard imports. Thanks to the QCO regime, he says, many of those units that were at risk of shuttering are now stabilizing. The government currently enforces 191 QCOs covering 775 different products.

While the system has expanded, Goyal assured that the compliance process has been simplified to safeguard Micro, Small, and Medium Enterprises (MSMEs) from undue burden.

One example cited was cold-rolled grain-oriented electrical steel, a specialized input for transformers, where the government has intervened to raise domestic quality levels so that power utilities and end-consumers are not disadvantaged. In the paint sector, Goyal noted he has solicited input from industry stakeholders to encourage domestic production of titanium dioxide, a key raw material.

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In his address, Goyal also urged state governments to address the issue of delayed incentive payments to businesses. He suggested establishing escrow mechanisms wherein a third party verifies eligibility and ensures timely disbursement. He further called upon states to rationalize and streamline labor, shop & establishment, and environment-related laws to attract more investment, pointing out that sustainability, quality, and ease of doing business are integral to a thriving manufacturing ecosystem. 

In summary, the government’s focus on stricter quality norms, combined with smoother compliance and stronger coordination between the Centre and states, aims to revive domestic manufacturing and reduce reliance on subpar imports.