New Delhi, Mar 13 (KNN) The Global Trade Research Initiative (GTRI) has called on the government to withdraw the mandatory quality control norms on steel fasteners, warning that their implementation will disrupt industrial supply chains and create regulatory challenges.
The Quality Control Order (QCO), issued by the Department for Promotion of Industry and Internal Trade (DPIIT) in September 2024, mandates Bureau of Indian Standards (BIS) certification for both domestic and foreign manufacturers. However, GTRI noted that BIS has yet to approve any manufacturer under the scheme, effectively halting imports from March 20.
“This will create supply chain bottlenecks, as thousands of small manufacturers struggle to obtain BIS certification, leading to factory shutdowns and job losses,” said GTRI Founder Ajay Srivastava.
India depends on imports for high-end steel fasteners, which are essential for industries such as automobiles, construction, aerospace, and medical equipment. In 2024, the country imported $1.1 billion worth of steel fasteners, with China being the largest supplier at $306 million, followed by Japan ($127 million) and South Korea ($111 million).
Srivastava warned that the complex BIS approval process and low trade volumes might deter foreign manufacturers from seeking certification, leading to critical shortages. He urged the government to reconsider the QCO and explore alternatives such as mutual recognition of international certifications or phased regulatory adjustments.
With the March 20 deadline approaching, businesses reliant on imported fasteners are bracing for operational disruptions that could impact India’s manufacturing sector.
(KNN Bureau)
