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Time to rethink quality standard system

Business Standard

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September 10, 2025

India's approach to enforcing product standards through quality control orders (QCOs) under the Bureau of Indian Standards (BIS) Act has rapidly expanded over the past decade, now covering over 800 product categories.

- RAJEEV KHER, ANIL JAUHRI, & VIMALENDU CHAUHAN

This surge in mandatory regulation reflects a recognition of historical gaps in consumer protection and a growing desire to safeguard domestic producers from the influx of substandard imports. However, beneath the intent to protect public health and foster quality lies a complex and often problematic reality: India's regulatory framework—centred on BIS as a combined standard-setter, certifier, and enforcer—risks undermining both industry competitiveness and consumer welfare.

A 2016 amendment to the BIS Act broadened the government's authority to mandate compliance with compulsory standards. This shift was principally motivated by international trade considerations, as QCOs proved useful tools for protecting domestic producers and managing the growing trade deficit. Indian products faced strict technical regulations, particularly in developed markets, while imports into India encountered limited technical countermeasures. QCOs thus emerged as strategic levers to level the playing field. QCOs may have grown out of trade challenges, but their rationale as instruments of consumer protection cannot be overstated.

While legitimate objectives underpin the drive to enhance technical regulations, India's regulatory model raises serious questions. The BIS—a body historically designed as a national standards organisation tasked with voluntary standardisation and certification—has been entrusted simultaneously with standard-setting, certification issuance, and enforcement of compliance. This consolidation of roles conflicts with international best practices and guidelines such as those of the World Trade Organization's Technical Barriers to Trade Agreement, which advocate institutional separation to prevent conflicts of interest and ensure transparency.

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