India has started to dismantle its ambitious Quality Control Order (QCO) regulatory regime, which grew from 14 orders a decade ago to nearly 800. In November 2025, the government withdrew over 20 QCOs covering essential inputs in the textiles, plastics, and mining sectors. This marks the first major reversal of a system that critics claim had disrupted supply chains and increased costs for MSMEs.
The QCO framework expanded rapidly after 2017, following the enforcement of the Bureau of Indian Standards Act of 2016. Orders began covering raw materials and intermediates like petrochemicals, bulk polymers, and synthetic fibers. This expansion reportedly shielded large domestic producers from competition but penalized smaller firms that relied on specialized imported inputs.
An October 2025 report by the Gauba Committee recommended revoking or suspending 208 QCOs to address these distortions. While deregulation is necessary to improve competitiveness, experts warn that removing QCOs without safeguards like real-time import monitoring could invite a wave of dumped imports, particularly from China.