DPIIT Introduces Risk-Based Compliance for Quality Control Orders to Ease Industry Transition

Livemint - Economy · 27 Jun 2026 · 2 min read
Prelims · Economy Mains · GS3 Economy High relevance

The government has introduced a risk-based compliance mechanism under the Transition Facilitation (Quality Control) Order, 2026, to help industries transition smoothly to full compliance with Quality Control Orders (QCOs) while maintaining quality standards.

Key points

Transition Facilitation (Quality Control) Order, 2026 introduces an alternative risk-based compliance mechanism to ease industry transition to full QCO compliance, valid for five years.

DPIIT notified QCOs to safeguard consumer interests, improve product reliability, and enhance domestic industry competitiveness through standardization.

The order allows manufacturers to procure supplies under Scheme II of BIS (Conformity Assessment) Regulations, 2018, which relies on self-declaration, instead of the stricter Scheme I (ISI Mark Scheme).

Licenses under the new framework are initially valid for two years and can be renewed, providing flexibility to industries like toys, PPE, air conditioners, and footwear.

[GS3-Economy] The reform aims to reduce compliance bottlenecks, promote technological advancement, and strengthen domestic supply chains, aligning with India's manufacturing ecosystem goals.

The order benefits manufacturers with a three-year compliance history, encouraging sustained adherence to quality standards and fostering innovation.

This move addresses industry concerns over difficulties in obtaining BIS certificates, which are crucial for quality assurance and market access.

[GS2-Governance] The policy reflects a balanced approach to regulatory compliance, ensuring consumer protection while easing industry burdens, a key governance challenge.

Way Forward: India should expand this risk-based framework to more sectors, integrate real-time compliance monitoring, and align QCOs with global standards to enhance export competitiveness.

Key terms

Quality Control Orders (QCOs)

QCOs are regulatory measures by the DPIIT to mandate quality standards for specific products, ensuring consumer safety and domestic industry competitiveness. They are critical for UPSC as they intersect with GS3 (Economy) topics like manufacturing and trade policies.

Bureau of Indian Standards (BIS)

BIS is the national standards body under the Ministry of Consumer Affairs, responsible for certification under the ISI Mark Scheme. Its role in standardization and quality control is vital for GS3 (Economy) and consumer protection under GS2 (Governance).

Scheme II of BIS (Conformity Assessment) Regulations, 2018

This scheme allows manufacturers to self-declare compliance with Indian standards, reducing bureaucratic hurdles. It is significant for UPSC as it exemplifies regulatory easing while maintaining quality, a recurring theme in governance reforms.

Transition Facilitation (Quality Control) Order, 2026

A temporary framework to help industries transition to full QCO compliance, highlighting the government's phased approach to regulatory implementation. Relevant for GS2 (Governance) and GS3 (Economy) in policy analysis.