New Govt Taskforce to Review Quality Orders, Ease MSME Compliance

In a significant move to streamline India’s quality assurance framework, the government has set up an Inter-Ministerial Group (IMG) to assess QCOs proposed by various ministries. The IMG will evaluate the need, content, and impact of QCOs before they are notified, aiming to bring consistency and coordination across sectors. The step is particularly relevant for MSMEs, which often struggle with compliance due to limited resources.

The IMG will also explore options such as graded standards and exemptions for domestic manufacturers who meet a minimum threshold of compliance, referred to as a ‘de minimis’ standard. This could reduce the burden on smaller enterprises that may not be in a position to obtain full Bureau of Indian Standards (BIS) certification or third-party approvals. The Cabinet Secretariat stated that the IMG has been formed in light of differing views among ministries on the content and necessity of QCOs. A whole-of-government approach is being promoted to avoid fragmented and sector-specific implementations. The Secretariat noted that uncoordinated QCOs often lead to compliance overlaps, trade disruptions, or unintended consequences for sectors not originally targeted.

The IMG will include senior officials from the ministries of finance, commerce and industry, consumer affairs, and representatives from the BIS, among others. According to the official memorandum, all new proposals for QCOs must be referred to the IMG for assessment and recommendation, in addition to the existing consultation process with the BIS. Ministries will also need to consult the IMG for any review or amendment of current QCOs.

For MSMEs, the initiative is both a challenge and an opportunity. On one hand, the standardisation push can improve product quality, global competitiveness, and consumer trust. On the other hand, the cost and complexity of compliance can be a barrier to entry and sustainability. Industry observers point out that if QCOs are implemented without adequate support mechanisms—such as training, certification infrastructure, and transitional timelines—they risk disproportionately affecting smaller firms.

The IMG has also been tasked with examining whether QCOs are necessary in the context of unfair trade practices and whether issues raised are generic, cross-cutting, or specific to particular countries. It may apply quantitative scoring methods and qualitative criteria to evaluate the restrictiveness and justification of each QCO on a case-by-case basis.

Overall, the IMG’s formation signals the government’s intent to make quality regulations more balanced, transparent, and industry-sensitive—especially in safeguarding MSMEs while advancing India’s broader quality compliance goals.