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Raising the Bar

India stands at a pivotal moment in its industrial production evolution. It stands at a crossroads to redefine itself not just as a supplier of low-cost raw materials but as a trusted source of high-quality industrial components.

Raising the Bar

Photo:SNS

India stands at a pivotal moment in its industrial production evolution. It stands at a crossroads to redefine itself not just as a supplier of low-cost raw materials but as a trusted source of high-quality industrial components. Achieving this shift requires more than just competitive pricing, it requires adherence to robust quality standards embedded in the policy frameworks for the products. The Quality Control Orders (QCOs) therefore emerge as a critical instrument to elevate India’s manufacturing credibility and integrate deeper into global value chains.

QCOs, issued under the Bureau of Indian Standards Act, mandate that notified products meet Indian standards before they can be manufactured, sold, or imported. Importantly, these regulations apply uniformly to domestic and foreign suppliers and align with the WTO’s Technical Barriers to Trade (TBT) Agreement. This ensures that QCOs are not trade protectionist measures but strategic enablers that enhance India’s reputation as a reliable producer and consumer of quality goods. Many of the products covered by QCOs may seem like basic commodities but are, in fact, vital strategic inputs where quality is crucial.

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Take sulphuric acid, for example. While this is a widely used industrial chemical and generally has a low cost per unit, its purity and concentration directly affect industries such as fertilizers, pharmaceuticals, and textiles. Poor quality sulphuric acid can damage equipment, lower product quality, and cause environmental harm. QCOs on such chemicals ensure that Indian producers meet stringent but necessary standards, enabling them to compete globally, especially in markets like the EU, where REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) regulations apply.

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Take another example ~ of Polyvinyl Chloride (PVC) resin. India is the largest importer in the world, and, without a mandatory standard, the risk of import and use of sub-standard PVC that goes into production of critical products like blood bags, drinking water pipes and catheters is very high, putting the ultimate user under severe health risk. Similarly, textile raw materials such as polyester staple fibre (PSF) and viscose staple fibre (VSF) illustrate how QCOs underpin export competitiveness. These fibres require precise attributes, including tensile strength and colour-fastness, to meet the demands of functional apparel and industrial textiles. Global brands in – creasingly insist on traceability and quality assurance in their supply chains.

In 2022, implementation of QCOs for PSF and VSF bolstered domestic manufacturing capabilities and helped align Indian exports with international quality benchmarks. The impact is evident: PSF imports declined by 43 per cent, from Rs 917 crore in FY23 to Rs 520 crore in FY24, while VSF imports dropped by 65 per cent, from Rs 2,033 crore to Rs 710 crore (Indian Express, August 2024). This import substitution underscores how standards can reduce dependency on external sources and promote domestic industry growth. Beyond chemicals and fibres, even seemingly small components like fasteners, bolts, nuts, and screws, play a surprisingly vital role in manufacturing and infrastructure.

These unassuming parts are crucial for ensuring the safety and durability of vehicles, machinery, and buildings. After all, even one faulty fastener can cause serious failures or accidents. By mandating BIS certification through QCOs, India is raising the quality bar for these components, helping domestic suppliers build trust and credibility in demanding global markets such as automotive and machinery, where reliability is non-negotiable. In parallel, the recent growth in the toy industry showcases the transformative power of QCOs across a value chain. The QCO on toys, introduced in 2020 and enforced from 2021, mandated BIS certification for all toys sold domestically.

This intervention has led to a 52 per cent drop in toy imports from USD 332.5 million in FY15 to USD 158.7 million in FY23 while exports increased by 239 per cent, reaching USD 325.7 million (PIB release, February 2024). More than 1,450 domestic manufacturers obtained BIS lic – en ses, growing the sector’s competitiveness and safety reputation. This illustrates how quality standards can catalyse domestic industrial and export growth simultaneously. Critics often raise concerns regarding QCO implementation challenges such as limited testing infrastructure, lengthy certification processes, and compliance costs that burden smaller firms.

These concerns need to be addressed and they point to challenges in implementation rather than flaws in the idea of maintaining strong quality standards. Advanced manufacturing economies like Germany and Japan have long maintained rigorous quality standards supported by robust institutional frameworks. Time has come for India to follow suit by expanding BISaccredited laboratories, streamlining certification procedures, recognizing foreign standards through mutual recognition agreements, and adopting phas – ed implementation timelines to ease transition pressures. The policy framework needs to in – clude fostering Common Facility Centres by the MSMEs. Quality standards ultimately guide how global buyers choose their suppliers. Certifications like CE (Conformité Européenne) in Europe or UL (Underwriters Laboratories) in the US signal reliability and lower risks of recalls or defects. Suppliers with these marks earn greater trust and often command better prices.

In contrast, those without certification usually compete only on price and carry higher risk. Enforcing QCOs ultimately helps Indian firms to meet global standards and enhance their market reach. India can move beyond low-cost assembly toward higher-value, innovation-led roles in global value chains. Similar to India’s toys and textile, the country’s competitiveness in global value chains will hinge on its ability to consistently deliver quality and reliability. QCOs, if implemented with transparency and adequate support, can provide the framework for this transformation. They elevate “Made in India” from a label of volume to a seal of quality and trust, an indispensable asset for the country’s industrial future.

(The writer is a retired IAS officer who worked as Secretary, Industries Tamil Nadu and Advisor to Governor, J&K)

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