According to a report by the "Print" newspaper on October 15, representatives of small and medium enterprises (MSMEs) in India have opposed the government's quality control orders (QCOs), calling them a "protectionist policy" under the guise of "quality control." On October 14, the Center for Social and Economic Progress (CSEP) held a special discussion session titled "Interpreting QCOs." Participants pointed out that QCOs have actually become tools for non-tariff barriers, adding extra compliance costs for small and medium enterprises. QCOs are issued by the Indian government and overseen by the Bureau of Indian Standards (BIS), aiming to improve domestic product quality while restricting the import of substandard products. After the implementation of QCOs, any enterprise must hold an effective license and use the BIS standard mark; otherwise, it is not allowed to produce, import, or sell products listed in the directory. Since 2019, the Indian government has widely used this measure to reduce import dependence and promote local industry. However, the participants pointed out that QCOs have exposed multiple problems during implementation. First, small and medium enterprises are required to pay high guarantees disproportionate to their turnover, increasing financial pressure on enterprises. Second, the strict compliance requirements of QCOs significantly raise the cost of certification and administrative procedures, objectively creating a new "license system," which not only increases the difficulty of survival for Indian small and medium enterprises but also benefits large enterprises with more capital, thus promoting market monopolies. Third, the complicated testing and certification procedures for intermediate products under QCOs often lead to supply delays and hinder the operation of the industrial chain. In response, experts suggested that the scope of application of QCOs should be strictly limited to end consumer products and should not be extended to raw materials or intermediate products essential for domestic production.
Original: www.toutiao.com/article/1846727329456140/
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