Whalesbook
India's Global Ambition Faces Standards Challenges
India's drive for higher manufacturing quality is at a key moment. While the government and industry push for better standards to compete globally, significant practical challenges are hindering manufacturers' access to international markets.
Boosting Quality at Home
India aims to be a trusted global manufacturing center by focusing on quality, safety, and reliability, according to Consumer Affairs Secretary Nidhi Khare. The government uses Quality Control Orders (QCOs) to enforce Bureau of Indian Standards (BIS) certification for 723 products. This effort supports consumer safety and the 'Atmanirbhar Bharat' (self-reliant India) goal. While manufacturing output grew 4.26% in FY 2024-25 and domestic demand is strong, India's share of global manufacturing exports has stayed at a modest 1.8% for ten years. This shows that domestic quality improvements don't automatically lead to more international sales.
International Recognition Lags
A major challenge for Indian exporters is that Bureau of Indian Standards (BIS) certifications aren't automatically accepted in key foreign markets. The US, Europe, and Japan, for example, require their own specific approvals like UL, CE marking, or JIS standards. Industry groups, including PHDCCI, are pushing for BIS to be recognized internationally to cut down on the extra costs and delays caused by multiple country-specific checks. While an agreement between UL and BIS aims for some knowledge sharing, full equivalence is still missing.
Testing Delays and Infrastructure Gaps
Testing times, often three to four months, are another big hurdle. The Confederation of Indian Industry (CII) points out that insufficient testing facilities also affect quality consistency. The government plans to list more private labs, but improving their capacity and speed is vital. Many global competitors have faster, more streamlined certification processes, and new rules like the EU's Digital Product Passport add further complexity for Indian companies. While government schemes like PLI have helped specific sectors, widespread global success depends on fixing these fundamental standards and testing issues, especially as trade deals help other countries gain market access.
Potential Culture Clash
Some worry that focusing heavily on Quality Control Orders (QCOs) might encourage a 'compliance-first' mindset rather than a true 'quality-first' approach. Manufacturers might just meet minimum rules instead of aiming for top global standards. Combined with slow testing and certification, this puts Indian exporters at a disadvantage against competitors in regions with smoother, internationally accepted systems.
Long-Term Hurdles for Exports
High import taxes on parts and other administrative hurdles also increase costs, making it hard for Indian products to compete on both price and quality. Even with India's goal for manufacturing to reach 25% of GDP by 2035, the current 1.8% global export share shows significant barriers to market access and quality perception remain. Relying too much on domestic rules without international BIS recognition could slow down India's integration into global supply chains that depend on consistent quality and fast approvals.
Outlook for Global Reach
The Indian manufacturing sector is expected to keep growing, thanks to government support and rising foreign investment. Experts predict continued output gains driven by smart manufacturing and technology. However, for India to truly become a global manufacturing supplier, it must align its standards with international benchmarks and quickly improve its testing and certification systems. Without these crucial steps, current growth might not lead to a much bigger slice of the global market.