The central government plans to use Quality Control Orders (QCOs) to raise the standard of Indian exports instead of offering more subsidies, aiming to make industries globally competitive.
Shift from Subsidies to Quality Focus
- The government believes subsidies alone haven’t significantly improved export outcomes.
- Hence, emphasis is shifting to non-subsidy support like: Simplifying land acquisition, Easing regulatory hurdles
- The key focus now is enforcing QCOs to ensure Indian goods meet international quality benchmarks.
What are Quality Control Orders (QCOs)?
- QCOs are legal mandates requiring products made, sold, imported, or exported to follow standards set by the Bureau of Indian Standards (BIS).
- They aim to prevent sub-standard goods from entering domestic or global markets.
- This applies to both domestic consumption and export production.
Ongoing Debates Around QCOs
Exemptions to Safeguard Exporters
- Certain exporters are exempted from mandatory QCOs, including:
- Units under Advance Authorisation schemes
- Export-Oriented Units (EOUs)
- Companies operating in Special Economic Zones (SEZs)
Special Case – Rare Earth Batteries
- Despite the anti-subsidy stance, the govt is reconsidering support for rare earth battery production, due to: China’s export ban, Urgent need for supply diversification
Industry Demands
- Some sectors continue to demand financial aid. Example: The Federation of Indian Mineral Industries (FIMI) urged a ₹10,000–15,000/kWh subsidy for alternative fuel used in mining machinery.
Conclusion
The government is taking a tougher stance by linking export success to product quality, not subsidies. While this may challenge small firms initially, it seeks to build long-term competitiveness in global trade.
