manufacturing sector

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.

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INDEX OF INDUSTRIAL PRODUCTION : TRENDS, CHALLENGES, & POLICY RESPONSE

India’s Index of Industrial Production (IIP) slipped to a three-month low of 4% in September 2025, reflecting slow growth in mining, primary goods, and consumer non-durables sectors. While consumer durables and manufacturing saw improvement due to GST reforms and festival demand, the overall industrial activity in the first half of FY 2025-26 was the slowest in five years. Government measures like GST rate cuts, PLI schemes, MSME credit support, and infrastructure development aim to revive growth. A holistic approach involving investment promotion, modernization, skill development, and policy stability is critical to sustain industrial growth and boost economic resilience.

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