Experts are urging a policy rethink of India's mandatory quality control orders, which have grown from 70 products in 2016 to nearly 790 today. While designed to improve safety, the complex certification process is raising costs for small businesses and disrupting supply chains. The government is currently exploring exemptions for the high-tech sector to ease these pressures.
The rapid expansion of mandatory quality controls is drawing attention from trade experts and domestic manufacturers. In 2016, roughly 70 products fell under the Bureau of Indian Standards (BIS) certification net. By 2025, that number had surged to nearly 790. While these orders aim to ensure product safety and quality for Indian consumers, they are now facing scrutiny for creating significant friction in the supply chain.
Smaller businesses are often the most affected by these requirements. Unlike larger corporations, small and medium enterprises frequently struggle with the high costs of travel, product testing, and administrative delays required for BIS certification. Trade bodies argue that these hurdles create an uneven playing field, where only the largest companies can afford the cost of compliance, potentially leading to higher prices for consumers.
The international impact is also coming into focus. A recent survey by the Japan External Trade Organization (JETRO) revealed that nearly 72% of Japanese manufacturers operating in India view the certification process as a material risk to their business operations. This perception poses a challenge for foreign direct investment, as companies may hesitate to expand if the regulatory environment remains too complex or time-consuming.
There is also a broader economic concern regarding trade reciprocity. If India maintains a rigid certification framework, experts warn that other nations could implement similar standards for Indian exports. This would force Indian companies to seek repetitive, country-specific certifications, which increases the cost of doing business abroad and creates logistical delays for exporters.
In response to these challenges, the government has signaled a move toward more flexible regulations. Commerce and Industry Minister Piyush Goyal indicated in Tokyo in August 2026 that a framework is being developed to waive or simplify mandatory certifications for high-technology sectors. This follows the introduction of the Transition Facilitation (Quality Control) Order, 2026, notified by the Department for Promotion of Industry and Internal Trade in June. This order was designed to offer an alternative, committee-based compliance pathway for certain products.
For investors, the key monitorable will be how effectively these new, simplified frameworks are implemented. While the relief for tech-heavy industries is a positive signal, analysts are watching to see if the government will adopt a broader, systemic review of the quality control regime. Whether these changes can successfully balance consumer safety with industrial competitiveness will determine the long-term impact on manufacturing costs and export margins.