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Journalism of Courage
The Ministry of Chemicals and Fertilisers on Monday revoked quality control orders (QCOs) on 14 items consisting of chemical intermediates, synthetic fibres and polymer resins that play a key role in the textile manufacturing value chain, as the sector has come under stress due to cancellation of US-bound export orders in the backdrop of steep 50 per cent US tariffs.
The QCOs that have been rolled back include primary input materials such as Terephthalic Acid, Ethylene Glycol, and intermediates such as Polyester Industrial Yarn (IDY), Polyester Staple Fibres (PSF), where India has significant import dependency. The Micro, Small and Medium Enterprises (MSMEs) in the textile sector had also raised concerns over higher costs due to additional regulatory burden.
The rollback of QCOs comes after an internal Niti Aayog report pointed out that the mandatory enforcement of standards on intermediaries and raw materials instead of finished goods has contributed to “operational complexities” for the industry. The Commerce and Industry Ministry, however, said that QCOs on items such as toys and plywood have helped curb substandard imports.
Industry representatives said that they expect other ministries to also soon revoke quality standards, such as those on viscose fibre and machinery used in the textile manufacturing units, soon. The Niti Aayog report recommended revocation of QCOs on 27 products, out of which 10 are yet to be implemented. The think tank also suggested suspension of QCOs on 112 products and deferment of QCOs on the remaining 69 upcoming QCO product categories.
The Confederation of Indian Textile Industry (CITI) said that the imposition of a 50 per cent US tariff on Indian goods, effective August 27, had taken a heavy toll on India’s textile and apparel exports in September. The US is the single largest market for India’s textile and apparel exports, contributing almost 28 per cent to the total revenue of India’s textile and apparel exporters.
India’s textile and apparel exports to the US stood at nearly $11 billion in 2024-25. According to CITI’s analysis, in September 2025, Indian textile exports slid 10.45 per cent over the previous year, while apparel exports declined 10.14 per cent during the same period. Cumulative exports of textiles and apparel items during September 2025 declined 10.34 per cent over September 2024,” CITI said.
Niti Aayog on QCO revamp affecting textile sector
Recommending removal of several QCOs by the Ministry of Textile and Ministry of Chemicals, the report concluded that standards have raised the raw-material prices by 10- 30 per cent when compared with global benchmarks and that “synthetic fibres and yarns do not inherently present direct health or safety risks to consumers and in cases “where end-use applications involve safety consideration, such as in protective clothing or bullet-resistant gear, the finished products are subject to separate tests and compliance requirements”.
“The QCOs have raised raw-material prices by 10- 30 per cent when compared with global benchmarks, as only a few domestic players are certified, and foreign suppliers face long lead times for BIS licensing. These cost increases cascade through the fibre-to-fabric-to-garment chain, reducing export competitiveness for apparel producers, which cannot claim exemptions as they do not directly import fibres,” the report said.
Although India has significant installed capacity in polyester, supply gaps persist in specialised grades and blends required for export markets. In viscose, production is concentrated among a handful of firms, creating dependence on limited players, the report said, adding that the resulting shortages and higher prices have forced several downstream units to operate below capacity.
“No major textile-exporting country, including China, Vietnam, or Bangladesh, imposes mandatory factory-level certification on synthetic fibres or yarns or their input. Quality control is achieved through voluntary standards and buyer audits. Before the introduction of QCOs, India imported a significant volume of specialised fibres and yarns to address quality and variety gaps in domestic supply. Since the implementation of QCOs, imports of several such products have declined notably, not as a result of substitution by domestic suppliers but because of certification-related challenges and limited BIS-approved sources,” the report said.
Targeting raw material & intermediate goods not fruitful
Niti Aayog said that over the past decade, India’s quality regulatory framework has evolved significantly with the expansion of QCOs issued under the Bureau of Indian Standards (BIS) framework and while QCOs are introduced to enhance consumer safety and promote high-quality manufacturing, their scope has extended beyond finished goods to encompass raw materials, intermediates, and capital goods that are critical for downstream industries.
Between 2016 and 2025, the number of products brought under mandatory QCO coverage has grown from less than 70 to nearly 790 products, including one Omnibus Technical Requirement (OTR) that covers 20 products, the Niti Aayog report said.
“A majority of QCOs have been introduced over the past 5 years, with nearly 70 per cent pertaining to raw- materials, intermediates, or capital goods rather than finished consumer products. While this expansion reflects India’s commitment to enhancing product quality and strengthening confidence in “Made-in-India” manufacturing, it has also posed certain challenges, particularly for MSMEs and export-oriented sectors that are dependent on imported inputs. Thus, in many cases, the implementation of these QCOs has resulted in unintended consequences affecting manufacturing competitiveness and the broader objectives of the Make in India initiative,” the report said.
