Industry sectors like machinery and automobiles under the oversight of Ministry of Heavy Industries (MHI) have been exempted from quality control orders (QCOs) to the extent of inputs sourced from abroad for export productions.
This takes the number of ministries who have got such exemptions to six. The other ministries on the list are steel, textiles, mines, chemicals and petrochemicals, and Department for Promotion of Industry and Internal Trade (DPIIT).
Export of machinery by industries overseen by MHI grew to Rs 37,811 crore in 2023-24 from Rs 26,871 crore in 2022-23.
The QCOs in products are issued by the ministries and departments under which they come. These are applicable to both domestically produced goods and imports. Getting a product certified for quality also requires the survey of the manufacturing facilities.
As not every international manufacturer is willing to submit themselves to this process, the choice of suppliers of inputs for domestic production narrows down. This also raises costs for the user industry.
MHI is currently implementing QCOs on electrical transformers and Low Voltage Switchgears and Control Gears. Around 19 other QCOs of the ministry have been finalised and implemented from next year. The products covered by these QCOs are auto components like gears and gearboxes, and earthmoving, mining and construction machinery. Some other products where QCOs will come into force include generators, transformers, pumps. compressors, centrifuges, cranes, metal cutting tools, weaving and embroidery machinery, machinery for working stones and rubber.