Transition Facilitation Order Enables Flexible Sourcing Framework for Industry While Upholding Quality Standards

In a significant step towards strengthening India's quality ecosystem and enhancing industrial competitiveness, the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, has notified the Transition Facilitation (Quality Control) Order, 2026. The Order introduces a framework aimed at balancing regulatory compliance with innovation, technological advancement and supply chain resilience.

The Government of India is working to build a robust quality ecosystem by ensuring the availability of safe, reliable and standards-compliant products. As part of this effort, DPIIT has notified Quality Control Orders (QCOs) for critical products to safeguard consumer interests, improve product reliability and enhance the competitiveness of domestic industry through standardisation and improved manufacturing practices.

Building upon this objective, the Transition Facilitation (Quality Control) Order, 2026 introduces an alternative risk-based compliance mechanism to facilitate a smooth transition for industry while maintaining quality assurance and consumer protection.

The Order enables domestic industry to procure supplies from manufacturers holding licences under Scheme II of Schedule II of the Bureau of Indian Standards (Conformity Assessment) Regulations, 2018, instead of Scheme I (ISI Mark Scheme) of BIS. Permissions under the mechanism will be granted based on technical capability, demonstrated compliance history and commitment towards technology advancement or adoption, development of design and research capabilities, innovation and strengthening domestic supply chain capabilities.

The Order also extends its benefits to manufacturers that have demonstrated consistent adherence to QCO requirements over a continuous period of three years without any default. The provision recognises sustained compliance with quality requirements and encourages continued adherence to prescribed standards.

The reform seeks to facilitate industry compliance while maintaining quality standards. By providing an alternative compliance mechanism, the Order is expected to support technological modernisation, innovation and the strengthening of India's manufacturing ecosystem.

The initiative is expected to strengthen domestic value chains, promote technology advancement, reduce compliance bottlenecks and enhance India's integration with global supply chains, while reinforcing consumer confidence in the quality and safety of products available in the Indian market.

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Abhijith Narayanan/ Garima Singh/ Ishita Biswas

Quality control compliance framework enables flexible sourcing, rewards sustained adherence, and supports innovation and supply chain resilience. The Transition Facilitation (Quality Control) Order, 2026 introduces an alternative risk-based compliance mechanism intended to support industry transition while maintaining quality assurance and consumer protection. It permits domestic industry to procure supplies from manufacturers holding Scheme II licences under the Bureau of Indian Standards framework, instead of Scheme I, subject to technical capability, compliance history and commitment to technology advancement, design and research, innovation and domestic supply chain strengthening.