With the industry grappling with high input costs and US tariffs, the government has relaxed Quality Control Order (QCO) requirements on several raw and intermediary goods used by domestic manufacturers.
After easing quality control rules on 14 petrochemicals, industrial raw materials, and several polymer and fibre intermediates, the government on Thursday relaxed norms for specified steel products as well.
The steel ministry had earlier granted an exemption from mandatory QCO compliance for certain steel products with a Bill of Lading dated on or before 31 October 2025. This exemption has now been extended to imports with a Bill of Lading dated on or before 31 March 2026.
According to experts, the government has been compelled to relax quality norms largely because domestic industry is facing the double whammy of high US tariffs and elevated raw material costs.
“The QCO was introduced to address the risk of dumping poor-quality goods and inputs. However, it has resulted in unintended consequences for domestic manufacturers, including higher input costs and delays in sourcing. These issues have been exacerbated by tariff challenges,” said Ranen Banerjee, Partner and Economic Advisory Leader, PwC India.
A Quality Control Order is a government mandate that requires specific products to meet Indian standards and obtain a Bureau of Indian Standards (BIS) licence for manufacturing, sale, or import.
The policy rethink also coincides with pressure from Washington. With the Trump administration imposing penalties on Indian exports, New Delhi is seeking to smoothen negotiations on a proposed bilateral trade agreement. In its 2025 report on foreign trade barriers, the US Trade Representative identified India’s QCO regime as a major non-tariff hurdle.
“The United States has concerns that BIS standards are not fully aligned with international standards without demonstrating that they would be ineffective or inappropriate,” the report stated.
A NITI Aayog panel has also advised the government to pause upcoming QCOs for raw materials and capital goods, recommending that new mandates be limited to products posing direct safety or environmental risks, according to media reports.
The textile and apparel sector has welcomed the relaxation, saying access to raw materials at globally competitive prices will improve their competitiveness. “Viscose staple fibre and several speciality fibres are critical inputs for value-added garments and made-ups. This, along with the earlier withdrawal of QCOs on polyester yarn and fibres, will address price and availability concerns raised by users in the man-made fibre segment,” said Ashwin Chandran, Chairman, Confederation of Indian Textile Industry (CITI).
While the textile sector has appreciated the move, steel manufacturers have raised concerns over potential dumping from countries such as China and fear that predatory pricing of imported products will harm domestic producers. Stainless steel exporters are likely to meet government officials next week to discuss the issue, said a source aware of the matter.