New Delhi, May 6 (KNN) The Global Trade Research Initiative (GTRI) has urged the government to withdraw Quality Control Orders (QCOs) on fasteners, warning that the regulations are increasing costs, reducing supply, and disrupting manufacturing operations without delivering clear quality benefits.
According to GTRI, the current framework imposes a rigid ‘one-product-one-licence’ model on an industry that operates with high product variation and small-batch production, creating duplication, delays, and compliance challenges.
Critical Input Across Multiple Sectors
Fasteners, including bolts, nuts, screws, washers, rivets, and studs, are used across sectors such as automobiles, construction, machinery, electronics, railways, aerospace, and infrastructure.
While they account for less than 1 percent of production costs, shortages can disrupt assembly lines and delay projects.
GTRI has warned that the QCO regime is already affecting Micro, Small and Medium Enterprise (MSME) output and may create wider supply bottlenecks across key sectors.
Compliance Costs Rise For Manufacturers
Under the current norms, manufacturers require separate Bureau of Indian Standards (BIS) certification for multiple product variants based on size, grade, and coating, significantly increasing compliance costs.
The President of Fastener Manufacturers Association of India, Narinder Bhamra suggests expenses of Rs 80,000 to Rs 1 lakh per licence, Rs 22,000 to Rs 25,000 for each variant test, and Rs 30 lakh to Rs 40 lakh for in-house laboratory facilities.
Foreign Suppliers Exit Amid Regulatory Burden
The GTRI report noted that several foreign suppliers have exited the Indian market due to rising compliance requirements, enabling certified suppliers to raise prices and contributing to shortages of specialised fasteners.
Shaunak Rungta, Central Executive Committee Member, Federation of Indian Micro, Small and Medium Enterprises (FISME), said certain specialised products such as drywall and chipboard screws are not currently available in India, leaving manufacturers with limited sourcing options.
He added that despite recommendations from the Gauba Committee to remove the QCO and findings from the Directorate General of Trade Remedies that found no evidence of dumping from China, the policy remains in place.
Trade Curbs May Hurt Make In India Push
India exported fasteners worth USD 882.3 million while importing USD 1.13 billion worth of specialised fasteners, highlighting a two-way trade pattern based on manufacturing capabilities rather than import dependence.
GTRI said unrestricted and efficient trade in fasteners is critical, as regulatory bottlenecks for such low-cost but essential inputs could raise manufacturing costs and impact India’s competitiveness under the ‘Make in India’ initiative.
(KNN Bureau)
