Quality Control Supports Better Growth in Industries: GTRI

Chennai: Since introduction of the BIS Act in 2017, over 140 Quality Control Orders have been issued for more than 550 products. Quality control has supported better growth in the respective sectors, finds GTRI.

The BIS Act simplified the process of notifying products, systems, and services that must meet specific standards. Some of the sectors where the QCOs were issued include toys, footwear made from leather, pneumatic tyres and tubes for automobiles, steel and steel products and electronic and IT products, including mobiles, mobile batteries and laptops.

The enforcement of QCOs and higher import duties has significantly reduced the import of substandard toys, with India’s toy imports dropping from US$ 304.1 million in FY 2019 to US$ 64.9 million in FY 2024 and imports from China decreasing from US$ 264.6 million to US$ 41.5 million in the same period. It saw a 15 per cent increase in domestic electronics production and 20 per cent increase in R&D spending by companies. The recall rate for electrical appliances reduced by 25 per cent. Industries such as electronics, textiles, and toys, have experienced growth rates of 8-10 per cent post-implementation, compared to 4-5 per cent growth before.

According to GTRI, there is an urgent need to upgrade India’s quality infrastructure and conduct a matter of fact study on performance of the QCOs and to know if there is need for any course correction.

India should adopt and align its standards with international ones to enhance export competitiveness and seek international accreditation for BIS certifications to avoid additional costs for manufacturers. Regulations should focus on essential health, safety, and environmental parameters and use a risk-based approach to balance enforcement with industry capacity. Additionally, support for SMEs should include gradual implementation of QCOs and CROs, financial assistance, technical guidance, and phased implementation to help small firms comply.