SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation, and Infrastructure
Ministry of Micro, Small & Medium Enterprises | Bureau of Indian Standards (BIS) | Reserve Bank of India (RBI)
The Government of India is implementing phase-wise Quality Control Orders (QCOs) with targeted exemptions and relaxations for Micro, Small, and Medium Enterprises (MSMEs) to ensure domestic production remains undisrupted. Micro and small enterprises have been granted compliance extensions of six and three months, respectively. Imports by domestic manufacturers for producing export-oriented products and up to 200 units for Research & Development purposes are also exempted.
The Bureau of Indian Standards (BIS) is supporting MSMEs through financial and technical relief. Financial incentives include up to 80% concession on the annual minimum marking fee for micro enterprises. Technically, the requirement for maintaining an in-house laboratory has been made optional, allowing MSMEs to utilize services from outside BIS recognized or NABL accredited labs.
Simultaneously, the Reserve Bank of India (RBI) has advised banks to link MSME loans to an external benchmark to improve monetary policy transmission. Furthermore, the government introduced the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME), providing credit guarantee cover for term loans up to βΉ100 crore for purchasing equipment and machinery.
What are Quality Control Orders (QCOs)? Quality Control Orders (QCOs) are regulatory directives issued by line Ministries, implemented by the Bureau of Indian Standards, which mandate compulsory compliance with specific Indian Standards to ensure product safety and quality for consumers.
Policy Relevance
This multi-agency approach (MoMSME, BIS, RBI) demonstrates a coordinated policy strategy to enhance the competitiveness and quality standards of MSMEs while actively mitigating the financial and logistical burden of quality mandates. The blended strategy of technical compliance relaxation and targeted financial support is critical for insulating the MSME sector from implementation shocks and fostering global quality standards without hindering short-term growth.
Relevant Question for Policy Stakeholders: How can the government ensure the quality and safety objectives of QCOs are fully met while making permanent the technical relaxations for MSMEs, thereby institutionalizing support for smaller units?
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