Think tank urges overhaul of quality control orders to cut trade friction

The Global Trade Research Initiative (GTRI) on Sunday pressed for a top-level review of quality control orders (QCOs), arguing that while consumer protection remains essential, current implementation risks morphing into de facto import restrictions and licensing barriers.

According to GTRI, mandatory quality certification requirements under these orders are inflating compliance costs for micro, small and medium enterprises (MSMEs) while pushing up consumer prices. The think tank warned that the cumulative burden of testing fees, licensing renewals and certification expenses threatens to undermine the competitiveness of India's small business sector.

"Without wider reform, the system risks weakening MSMEs, raising prices and discouraging trade," said GTRI Founder Ajay Srivastava. The organization cautioned that India's exporters face a compounding problem if other nations adopt similar quality control frameworks. Companies would be forced to obtain separate country-specific certifications even when products already satisfy recognised international standards, multiplying costs and administrative headaches.

Srivastava highlighted the financial toll on exporters, including substantial travelling and per-diem expenses for visiting compliance officers, along with mounting licensing and testing fees. These cumulative charges would increase export costs, delay shipments and erect fresh barriers to cross-border commerce, he argued.

The GTRI's intervention reflects growing concerns among India's trade community about regulatory measures that, while ostensibly protective, may inadvertently restrict market access and burden domestic manufacturers seeking to grow exports.