India May Ease Up on Import Quality Rules That Riled US

India is considering tweaking some of the import quality rules that the US has flagged as major non-tariff barriers as New Delhi negotiates a trade deal with Washington to lower 26% reciprocal tariffs, according to two people familiar with the matter.

- Dhirendra Kumar

The potential policy shift could involve a review of India's Quality Control Orders (QCOs)—a suite of regulations that require both domestic and foreign manufacturers to meet standards set by the Bureau of Indian Standards (BIS). These rules have become a flashpoint in trade talks, with the US arguing they unfairly restrict market access for American companies.

Indian negotiators have, in return, sought relaxations from the US on stringent compliance norms for Indian goods to help facilitate a mutually beneficial trade deal, the people said on the condition of anonymity.

"The review of QCOs is part of the government's efforts to work on multiple fronts to ease trade frictions and arrive at a mutually beneficial deal," said one of the two people cited above.

India seeks to negotiate a bilateral trade agreement (BTA) with the US as reciprocal tariffs are estimated to shave off exports worth nearly $6 billion. Gems and jewellery, marine products, electronics, and auto parts sectors are expected to bear the brunt of the impact.

"The change in the applicability of QCOs is being considered, which could include exempting certain products from mandatory certification—particularly those intended for industrial use or not meant for consumer sale," said the second person cited earlier.

"It may also include easing compliance requirements for imports from trusted countries that already meet widely accepted international standards," this person said.