India's Economic Ambitions and Quality Control
India aims to grow from a $4 trillion economy to a $30 trillion economy by 2047. To achieve this, trust in Indian products is essential, with quality being a critical component. The gradual expansion of mandatory Quality Control Orders (QCOs) by the government is a significant step towards ensuring product quality.
Current Challenges with QCOs
- QCOs are viewed as both beneficial and controversial.
- Designed to assure quality, they are sometimes seen as restrictive.
Quality Framework and Implementation
- Administered by the Bureau of Indian Standards (BIS), traditionally voluntary.
- Recently, the government expanded mandatory QCOs to critical sectors like steel and electronics.
- Out of 23,000 BIS standards, only 187 QCOs have been notified.
Enforcement of QCOs
QCOs are legal instruments requiring certification through BIS. Non-compliance can lead to penalties.
Fault Lines in QCO Implementation
- Domestic Industrial Divide: Intermediate goods producers welcome QCOs, but downstream consumers fear price hikes.
- International Pushback: Countries like the US and EU have expressed concerns over India's QCOs.
- Intra-Government Dissonance: Some officials question the application of QCOs to raw materials.
QCOs and Global Market Access
While effective in reducing low-quality imports, QCOs should also enable Indian manufacturers to access global markets confidently.
Conformity Assessment Challenges
- BIS holds exclusive authority for certifications, causing delays and bottlenecks.
Suggested Improvements
- Utilize accredited certification bodies to handle low- and medium-risk products, reducing BIS overload and improving processing times.
- Push for mutual recognition agreements (MRAs) in trade negotiations.
Three-Pillar Road Map for QCOs
- Export Promotion: Align certifications with global standards.
- Dumping Prevention: Enforce QCOs in vulnerable sectors.
- Consumer Safety: Maintain stringent enforcement for public-facing goods.
Conclusion
India's manufacturing future relies on global perception of quality. QCOs should be intelligent and inclusive, forming the foundation for a trusted "Brand India." Export promotion, import protection, and consumer safety should work together to position India in the global economic order.
