Quality control orders: Let's fix all distortions

Dropping QCOs that act as import barriers for factory inputs will help reduce costs but India should also tackle other distortive aspects of our trade policy that do the economy a disservice

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The government's decision to roll back a raft of quality control orders (QCOs) on imports of factory inputs has raised the hope that it will improve the competitiveness of India’s exports.

This is a valid proposition. With world trade roiled by US President Donald Trump's tariff hikes, such a move could help Indian exporters access cheaper inputs to make products at lower cost. The point is not that quality does not matter. It does, vitally. Rather, the point is that quality checks often function as non-tariff barriers that jack up the cost of imports, offering domestic producers protection that is not reflected in the official tariff structure. Such collateral effects must be kept minimal. Moreover, Indian policy needs to be coherent, strategic and principled.