New Delhi. The Government of India has recently taken a big step and removed 14 BIS Quality Control Orders (QCOs). These include many important chemicals, polymers and fiber based materials such as terephthalic acid, ethylene glycol, polypropylene, polyethylene, PVC, ABS, polycarbonate and polyester yarn and fiber. This decision has come into effect with immediate effect and is being considered as a historic step from the point of view of relief for industries and “Ease of Doing Business”.
The government says that withdrawal of these orders will increase the availability of raw materials, reduce restrictions on imports and reduce costs, especially for MSME units in the packaging, textile and molding sectors. Also, now manufacturers and importers will not need separate BIS certification for each product, which will make the compliance process easier and faster.
Industry got relief, but concerns remain
The chemical and plastic sector of the country has welcomed this decision. Industry leaders say that this step is practical and growth-oriented, which will promote “Make in India” and also make exports competitive. But on the other hand, some experts believe that this may affect product quality, especially if the entry of low-quality imported materials increases in the market. Earlier BIS certification used to ensure that the products met certain standards. Now the responsibility has been left on the companies themselves to maintain quality and work as per international standards (like ISO,ASTM or REACH).
There are two aspects to this step
On the one hand, large industries that are already part of global supply chains already adopt international quality standards. In such a situation, the quality of their products will not be significantly affected. Rather, now they will get more flexibility in adopting new materials and technology, which can increase innovation and efficiency. On the other hand, small or cost-sensitive manufacturers can now use cheaper materials without quality testing, leading to uneven quality of products. This means that both good and poor quality products can be found together in the market.
Government’s perspective: Reliance on self-regulation
The government argues that these industries are now “mature” and can be trusted to maintain quality. The ministry believes that now market competition and consumer demand will decide which companies will survive. If any company provides poor quality, it will be out of the market. This policy represents a shift “from regulation to trust”, where the government assumes that industries will take responsibility for themselves and maintain quality.
export promotion
In the cabinet meeting on Wednesday, the central government had approved two big schemes related to promoting exports. One of these is Export Promotion Mission and the other is Credit Guarantee Scheme. The government will spend Rs 25,060 crore for the first scheme. This will also have 2 parts. In the first part, exports will be financially encouraged by Rs 10,401 crore. In the second part, Rs 14,659 crore will be given direction by improving the infrastructure for exports.
Along with this, the government has also approved a Credit Guarantee Scheme (CGSE) of Rs 20,000 crore for exporters. Information and Broadcasting Minister Ashwini Vaishnav has said that this scheme will be implemented through NCGTC and Financial Services Department. In this scheme, some part of the loan will be collateral free, that is, no mortgage will have to be taken for it. Getting loan without any guarantee will increase the availability of capital and the business will run smoothly.
