India’s stringent quality control orders (QCOs) on a range of products, including medical textiles, footwear, and viscose staple fibre, have drawn criticism from several countries at the World Trade Organization (WTO). Indonesia and Thailand have specifically questioned these measures, raising concerns about potential trade barriers.
Last year, a group of nations including Canada, Japan, the UK, and the EU had also expressed similar concerns, labelling India’s QCOs as protectionist.
At a recent WTO meeting on market access, Indonesia further highlighted its concerns over QCOs on plywood, wooden flush door shutters, viscose rayon cut staple spun yarn and dyed knitted or crochet fabric made from synthetic fibres.
India has implemented QCOs on a diverse range of products to promote domestic manufacturing and curb substandard imports. These measures mandate compliance with specific Indian Standards, obtaining a license from the Bureau of Indian Standards, and displaying the standard mark on the products.
Indian officials have defended the QCOs, emphasising that they apply equally to domestic production and imports. They argue that these measures are essential to ensuring the quality of Indian products and strengthening the country’s position in the global market.
In addition to QCOs, India has imposed import restrictions on tyres as part of its broader strategy to boost domestic manufacturing. The government has also introduced production-linked incentive schemes to incentivise local production in select sectors.
Thailand has expressed concerns about certain measures that may inadvertently restrict imports of copper, wooden boards, and tyres. The country believes these measures could have a similar effect to quantitative restrictions.
As India continues to implement its industrial policies, it is crucial to balance the need for domestic manufacturing with international trade obligations. Transparent and non-discriminatory trade practices will be key to addressing the concerns raised by WTO members and maintaining a level playing field for global trade.
