intermediate goods.

QUAITY CONTROL ORDERS & THEIR UNINTENDED CONSEQUENCES FOR INDIAN TRADE

Quality Control Orders (QCOs) in India, intended to improve product quality, have largely targeted raw materials and intermediate goods rather than finished products. This has increased input costs, disrupted supply chains, and reduced trade competitiveness, particularly affecting MSMEs. Imports of critical inputs have fallen, exports have seen short-term gains but long-term decline, and domestic suppliers have gained market concentration advantages. Aligning QCOs with global standards, focusing on finished goods, strengthening testing infrastructure, and supporting MSMEs are key steps to mitigate these challenges.