According to a report by the "Print" newspaper on November 15, the Indian government has recently revoked 69 Quality Control Orders (QCOs) in an effort to promote exports and improve the business environment. Among the revoked QCOs, 14 are related to the textile industry, including chemicals, polymers, and fiber intermediates, while 55 involve intermediate products in the automotive and steel industries. According to the requirements of QCOs, only products that meet specific standards can be imported. The original intention was to set up barriers and block imported products from entering, thereby promoting domestic manufacturing. Since 2016, Indian authorities have issued 790 QCOs. However, an internal report by the National Institution for Transforming India (NITI Aayog) stated that 70% of the issued QCOs targeted raw materials, intermediates, and capital goods rather than finished consumer goods. India still heavily relies on imported raw materials and intermediates, so QCOs have not helped India expand its exports but instead significantly increased production costs, even directly threatening the survival of small and micro enterprises. For example, the long certification period under QCOs delays production. Currently, key manufacturing materials such as polyester, steel, and yarn required by Indian industries depend on imports, but the quality certification cycle for these products lasts 7-8 months, seriously affecting the operations of small and micro enterprises. Another example is the high compliance costs that suppress market vitality. Expenses such as testing, inspection, certification, and officials' international travel costs arising from QCOs must be borne by companies and then passed on to consumers, not only increasing corporate compliance costs but also suppressing consumer vitality. In the context of tense U.S.-India trade relations, small and micro enterprises are already facing operational pressures, and the compliance costs from QCOs have a greater impact on small businesses than on large ones, further exacerbating market imbalances and causing doubts. In this context, the relevant departments of the Modi government have taken into account the recommendations of the NITI Aayog and started to revoke some QCO orders.

Original source: www.toutiao.com/article/1848961769659657/

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