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Why MSMEs are Worried About the Quality Mandate

Although businesses have welcomed the government's desire to restore product quality and consumer protection, they fear a top-down approach lacking clarity will hurt domestic producers and innovation.

By Sandeep SoniUpdated at: 8 July, 2025 5:25 am
BIS

Across sectors, the common demand has been greater clarity, consistency, and industry collaboration and not rejection of quality enforcement. (Source: financialexpress)

As India moves aggressively to bring more product categories under the purview of mandatory quality norms, industry stakeholders across sectors—from pharmaceuticals to solar and kitchen appliances—are voicing growing concern over what they see as rushed implementation, regulatory overlaps, and operational ambiguity in Bureau of Indian Standards (BIS) norms and Quality Control Orders (QCOs).

Although businesses have welcomed the government's desire to restore product quality and consumer protection, they fear that a top-down approach, lacking clarity, will damage domestic producers, slow innovation, and be a source of compliance confusion.

Implementation without standards

Shailesh Shah, President, All India Stainless Steel Industries Association, pointing to a critical issue, said that standards are still in the making, but the government wants to implement them.

The implementation of QCOs for stainless steel utensils mandating compliance with IS 14756 for cookware and utensils was a must for medium enterprises by April 1, 2025, while small and micro units have to comply by July 1 and October 1, respectively, this year.

The industry is, he said, having to meet still-developing standards. “The manufacturer has a problem when he applies for registration today. Under what standards he has to apply because things are not very certain,” Shah said at an event on boosting MSME competitiveness.

Another problem is the quality of the raw material that is BIS-certified. “No chemical change takes place in the utensils when they are manufactured, but everyone complains that the utensils are cracking,” he said, adding that the substandard raw material that is approved under BIS is inducing downstream quality problems. “So, although the QCOs are brought in, the standards are not defined.”

Double regulations

For the pharma sector, operating under an already strict regime through the Drugs and Cosmetics Act and the Indian Pharmacopoeia, the issue isn't the absence of quality standards but double regulations.

Saurabh Arora, the Indian Pharmaceutical Association's President highlighted that for the pharmaceutical industry, which is regulated by the Drugs and Cosmetics Act and involves pharma products, cosmetic products, medical devices, and ayurvedic and herbal products, standards and regulations are already in place.

“But with the QCOs coming out now, what is happening from the industry perspective is that we are getting into a double regulation and confusion,” Arora said.

In most cases, you will see the Pharmacopoeia standards, which are mandatory, are actually more stringent while a lot of general chemicals are now also covered under the QCOs where the standards are lower, he explained. Arora sought exemption from QCOs for the ingredients and the products used in pharmaceuticals “because it is better for us to comply with the higher standards already in place and avoid double compliance.”

Even in the case of cosmetics, now under QCO purview, Arora pointed out gaps. “A lot of new products in the market do not have parallel standards. So, the government ends up testing them with the incorrect standard. For instance, there is no standard for face serums. Hence, either there should be a simple horizontal standard for such products or you can come up with a specific vertical standard,” he said.

Disorganisation in appliances

In the swiftly expanding home and kitchen appliance industry as well, businesses are struggling with hazy schedules and uneven enforcement. Naman Jain who sells home and kitchen appliances like egg boilers, electric kettles, sandwich makers, air fryers, and ceiling fans online, said the QCOs are not quite prepared and there was an absurdity in the implementation.

Many in the home and kitchen appliances category are not even sure about which products come under which particular QCO and the date of the implementation, and the quality standards to be followed, according to Jain.

Outdated systems

Though India promotes solar heating options under its sustainability initiatives, the adoption of QCOs in the solar water heater industry is bogged down with outdated systems and communication breakdowns.

Jaideep Malaviya, Secretary General at Solar Thermal Federation of India, recognized BIS initiatives towards engaging the industry in consultations but identified major structural concerns.

"The regional offices are still not brought in line with the updated structures. They are still operating on the old ones. The portals of the BIS also need to be updated from time to time," Malaviya said.

Across sectors, the common demand has been greater clarity, consistency, and industry collaboration and not rejection of quality enforcement. Stakeholders have urged the BIS and DPIIT to adopt a systems-oriented approach for realistic timelines, streamlined licensing processes, and alignment with existing regulatory frameworks. The current challenges, however, according to experts, reflect a deeper tension between the push for higher standards and the practical realities of manufacturing and compliance.

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