New Delhi, Apr 14 (KNN) The government should cap testing and certification charges for routine industrial products, as rising compliance costs under Quality Control Orders (QCOs) risk impacting manufacturing and small importers, trade-focussed think tank Global Trade Research Initiative (GTRI) has said.
While the QCO framework is aimed at improving product quality and consumer safety, the think tank cautioned that its rapid expansion is straining testing infrastructure and creating compliance bottlenecks, particularly for micro, small and medium enterprises (MSMEs).
News agency PTI quoted GTRI Founder Ajay Srivastava as saying, “India’s expanding quality control regime is imposing such high testing and certification costs that many MSME importers may be pushed out of business, leaving the market increasingly dominated by large importers.”
Rising Costs Burden Small Importers
“While large importers can spread these costs across high volumes of imports, smaller firms importing specialised or low-volume products cannot. For many MSMEs, certification expenses running into Rs 15-20 lakh upfront can make imports commercially unviable,” Srivastava added.
This could lead to increased market concentration in favour of bigger players.
These costs arise under the Foreign Manufacturers Certification Scheme (FMCS), which mandates Bureau of Indian Standards (BIS) certification for products covered under QCOs.
The process includes appointing an authorised Indian representative, submitting technical documentation, undergoing factory inspections, and testing product samples at BIS-approved laboratories.
Impact on Manufacturers
Srivastava emphasised, “High certification costs also undermine the ‘Make in India’ initiative, as many domestic manufacturers rely on imported specialised inputs, components, and machinery that are not produced locally at the required quality or scale.”
Suggested Reforms
To ease the burden, GTRI recommended capping testing charges, recognising reports from accredited foreign laboratories, and adopting risk-based testing norms instead of extensive sampling requirements.
The think tank also called for regulatory impact assessments before introducing new QCOs to ensure that compliance costs do not outweigh intended benefits.
(KNN Bureau)
