Bloomberg reported on November 20 that the Modi government has significantly adjusted its previously strongly promoted Quality Control Order (QCO) policy, driven by Trump's tariffs and domestic industry demands. QCO is a core trade policy tool of the Modi government to promote "Make in India," requiring relevant products to pass mandatory quality certification before entering the market. However, this policy has been controversial due to issues such as lack of transparency in procedures, the need for on-site factory inspections (regardless of origin), and high compliance costs. Data shows that the number of products covered by QCO increased from 88 in 2019 to 765 in 2024. At the same time, large enterprises have lobbied for the introduction of QCO under the pretext of "quality control" to resist low-cost imports, while small and medium enterprises have faced difficulties due to their inability to bear compliance costs - which not only increases the burden on SMEs but also reduces supply chain efficiency. Currently, multiple QCOs related to industries such as textiles, plastics, and metals have been revoked, and more QCOs are planned to be suspended or postponed. In addition, Trump has repeatedly accused India of setting up trade barriers, especially criticizing the QCO as "unpleasant." In this context, the Modi government changed its stance and pushed for policy contraction. Currently, the textile industry has benefited first, with QCOs in areas such as polyester supply chains and viscose staple fibers having been revoked. It is reported that an Indian expert committee has recommended revoking 27 QCOs, suspending 112, and postponing 69, and specific policy implementation will further affect India's trade pattern. However, although the policy adjustment aims to alleviate trade pressure and enhance industrial vitality, some industries are concerned that this may lead to Chinese goods dumping. In response, India is considering accelerating its anti-dumping reaction speed.
Original: www.toutiao.com/article/1849489150914700/
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