GTRI urges review of BIS quality orders as compliance costs weigh on Indian supply chains

The trade think tank says mandatory BIS certification can raise costs, disrupt supply chains and burden MSMEs, potentially feeding into consumer prices. GTRI welcomed proposed high-tech relief but called for broader Quality Control Order reforms.

— Source publishedSun, 30 Aug, 2026, 19:16 IST·First seen Sun, 30 Aug, 2026, 19:21 IST·Source The Hindu BusinessLine

What happened

Global Trade Research Initiative (GTRI) · GTRI urged India to review Quality Control Orders, saying mandatory BIS certification raises costs, disrupts supply

Key facts

  • 71.9% of Japanese manufacturers in India said BIS certification had affected or was expected to affect operations
  • Fiscal 2025

Why this matters

Monitor the QCO review for opportunities to diversify imported-component sourcing, accelerate supplier onboarding and pursue partnerships with compliance-constrained MSME manufacturers.

What to watch

  • Commerce, DPIIT or BIS notification detailing high-tech exemptions, exemptions for inputs, or implementation deferrals.
  • Publication, withdrawal, amendment or sunset review of specific Quality Control Orders.
  • Acceptance of foreign laboratory reports, expanded BIS lab capacity, or faster certification turnaround commitments.
  • Industry data showing QCO-linked shipment holds, import declines, testing backlogs or rising component prices.
  • Retailer and manufacturer disclosures of higher compliance costs, inventory shortages or category-level price increases.
  • MSME associations escalating complaints about testing capacity, certification fees or inability to source compliant inputs.
  • Map BIS/QCO exposure by SKU, imported component, supplier and certification expiry date.
  • Identify products where compliance expense, testing delays or restricted inputs are already raising landed cost or causing stockouts.
  • Build dual-source options using BIS-approved domestic suppliers and pre-qualified overseas suppliers with existing certification pathways.
  • Negotiate supplier contracts to allocate recertification, testing, delay and inventory-holding costs.
  • Delay irreversible assortment exits until the scope of high-tech exemptions and any QCO review is clarified.
  • Prepare price, pack-size and promotional contingency plans for categories with concentrated import dependence.

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