Quality control orders now cover 732 products helping curb cheap quality imports: Goyal

• Quality Control Orders (QCOs) that restrict the import and sale of substandard items in the country have been extended to 732 products to align with international standards and boost exports.

Highlights:

• The Indian government has expanded Quality Control Orders (QCOs) to cover 732 products, significantly increasing the scope from 106 products in 2014. This move, announced by Commerce Minister Piyush Goyal, aims to align India’s manufacturing standards with international norms and enhance the country's export competitiveness.

Key Highlights of the QCO Expansion

Significant Expansion:

• The number of QCOs has risen from 14 covering 106 products in 2014 to 174 orders now governing 732 products. This expansion underscores the government's focus on raising quality standards to compete globally and restrict the influx of substandard imports, particularly from China.

Strategic Importance:

• The implementation of QCOs helps India enter the global value chain by ensuring that imported goods meet quality standards. Notably, imports from China have reached $60 billion during the first seven months of 2024, a 10% increase from the same period in 2023. The QCOs serve as a tool to control the import of low-quality goods, especially from China.

Export Competitiveness through Quality:

• Minister Goyal emphasized that export competitiveness should come from high-quality production, rather than relying on subsidies or protectionist policies. The government’s vision of a self-reliant India hinges on self-confidence in the quality of its goods.

Ensuring Compliance and Legal Provisions

Bureau of Indian Standards (BIS):

• Under the QCO framework, products cannot be manufactured, sold, traded, or imported unless they bear the BIS certification mark. This certification ensures that goods meet the quality criteria set by the Bureau of Indian Standards.

Penalties for Non-Compliance:

• Violating the BIS Act can lead to severe penalties:
  • First offence: A fine of at least ₹2 lakh or imprisonment for up to two years.
  • Subsequent offences: Fines can increase to a minimum of ₹5 lakh, potentially extending up to 10 times the value of the goods.

Challenges in Industry Alignment:

• Despite the benefits, aligning industries with the stringent QCO requirements remains a challenge. Minister Goyal cited the pharma sector’s reluctance to join international protocols due to opposition from industries that prefer shortcuts to quality compliance.

Impact on India’s Economy and Trade

Job Creation and Economic Growth:

• Goyal remarked that the focus on high-quality manufacturing would boost economic activity, generate employment, and increase exports. By enforcing quality standards, India aims to position itself as a global manufacturing hub.

International Compliance:

• QCOs are framed in accordance with the World Trade Organization’s Agreement on Technical Barriers to Trade (TBT), ensuring that India's standards align with international trade agreements. This alignment is crucial for expanding India’s footprint in global markets.

Prelims Takeaways:

• Quality Control Orders (QCOs)