It is time for India to reversal its result of quality control orders

Copyright © HT Digital Streams Limit all rights reserved. Opinion Livemint 3 min Read 17 Apr 2025, 07:30 Hours IST which exposes Indian manufacturers to global rivalry, drives efficiency, as long as local regulations do not get in the way. (PIB) Summary Suman Berry of the Niti Aayog and EAC-PM pointed out how QCOs act as non-tariff barriers to the evil of MSMEs. Given India’s need to indicate the openness of the trade, we must all roll back except the few we actually need. Perhaps the only positive outcome of the tariff unrest in which the US plunged the world is the renewed attention paid to trade barriers. Around the world, this has led to countries reconsidering their own policies. The same goes for India. It is in this context that the remarks made by Suman Bery, vice -chairman of Niti Aayog, who is also the chairman of the Economic Advisory Council to the Prime Minister. On Tuesday, he did the damage that many of our micro, small and medium businesses (MSMEs) suffered as a result of a spate of quality control orders (QCOs) issued by the government. This requires for approval of quality check for goods to be imported to India, with the Bureau of Indian Standards responsible for certifying or specified items. Also read: Unilateral Rate Risk Delivery aimed at intellectual property, while consumer protection is the apparent purpose, the relevant red tape tends to act as a non-tariff barrier. As reported, India has had as many as 187 QCOs through one score that covers 769 products by mid -March. Some of these are for input used by different industries, and the result of it held the import or made it more expensive, which increased the cost base of the manufacturers concerned. It threatens their ability to praise their completed products competitively. While Berry was critical of QCOs about input, his remarks were part of a discussion on the export prospects of power and hand tools made by small businesses, seeing their accounts swelling for the steel and polymers they use. Since compliance with the rules of the World Trade Organization requires rates to remain within limits, he noted, other devices were used. ‘It takes a certain genius for the bureaucracy to come up with an intervention that is even malicious [than tariffs] Due to random, Berry reportedly said, adding that it had put the survival of several MSMEs at stake. It is true that QCOs can serve a serious purpose if there is a real problem of quality. It is clear that India cannot be a landfill for sub-standard products made elsewhere. Deployed as obstacles, these orders can also prevent the cost of production. Spring of cost competitiveness to innovation-led manufacturing with China facing steep import tariffs imposed by the US is exceptionally the fear that Indian producers are through an influx of Chinese goods. A time we must indicate the country’s openness to international trade. Tariff reduction is an important aspect of it. By exposing Indian manufacturers to global rivalries, efficiency drives, as long as local regulations do not get in the way. In theory, it also helps us to find out what we can produce for the world. Since non-tariff barriers usually have the same effect as rates, they are inconsistent with the effort. Also read: How Trump’s advisers are tied up in knots about his tariff obsession, while it is unmistakable that our global embrace has left many businesses disappointed and New -Delhi has waved its low barriers policy, so that the ‘supplementary’ trade transactions with a chosen partners can still be good. Indeed, the contemporary trading turbulence argues for a broader approach. Global supply chains are in flood; For us to join them, at least input must be kept cheaply. It’s time to withdraw most QCOs. We must retain only the few who serve a clearly justifiable purpose. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #msmes #tariff Hike #Trade War Mint Special