BIS Testing Charges Threaten MSMEs: Experts Urge Govt to Cap Costs Under Quality Control Orders

Global trade research and domestic policy discussions are intensifying following warnings that escalating testing and certification costs are jeopardizing India's small and medium-sized enterprises (MSMEs). The Global Trade Research Initiative (GTRI) has called upon the government to cap charges imposed under Quality Control Orders (QCOs) to safeguard the country’s burgeoning manufacturing sector and small importers.

While the intent of the QCO policy is laudable—aiming to boost product quality and consumer safety—GTRI points out that the rapid expansion of this regulatory regime is creating severe compliance bottlenecks and putting immense pressure on the overall testing infrastructure.

MSMEs Struggle with High BIS Compliance Costs​

GTRI founder Ajay Srivastava stated that the current quality control policy is imposing testing and certification costs that are simply unsustainable for many businesses. He warns that these high charges risk pushing numerous MSME importers out of business.

This market stress is creating an imbalance, allowing the market to become increasingly dominated by large importers who possess the financial capacity to absorb such expenses.

For smaller firms, especially those dealing in specialized or low-volume products, the upfront certification burden is crippling. Srivastava notes that certification expenses running into Rs 15-20 lakh can make importing goods commercially unviable for many MSMEs.

Understanding the Foreign Manufacturer Certification Scheme​

The financial requirements stem from the Foreign Manufacturers Certification Scheme (FMCS) managed by the Bureau of Indian Standards (BIS). This scheme mandates that foreign manufacturers must obtain BIS certification before exporting products covered by India’s Quality Control Orders.

The rigorous process is detailed and demanding. It requires foreign suppliers to appoint an authorized Indian representative, submit extensive technical documentation, undergo BIS factory inspections, and provide samples for testing at BIS-approved laboratories.

Calls for Regulatory Oversight and Cost Capping​

In response, GTRI has presented a clear set of recommendations to the government. The think tank urged policymakers to immediately "cap" the testing charges for routine industrial products.

Furthermore, GTRI advised the government to enhance efficiency by recognizing reports generated from accredited foreign laboratories. They also stressed the need to shift away from excessive sample requirements toward adopting risk-based testing norms.

Critical to the immediate implementation of any new quality framework, GTRI emphasized the necessity of conducting thorough regulatory impact assessments before any new QCOs are imposed.

Protecting 'Make in India' Through Measured Regulation​

High certification costs do not merely affect importers; they threaten the broader 'Make in India' initiative as well. According to GTRI, many domestic manufacturers are dependent on importing specialized inputs, components, and machinery.

The challenge arises because these critical foreign components are often not produced locally at the required scale or specific quality standards necessary for domestic manufacturing growth. By stabilizing input costs through measured regulation, the government can help ensure the continuity and viability of the entire manufacturing ecosystem.