Challenges Faced by MSMEs in Accessing Imported Components
The Government has identified challenges that Micro, Small & Medium Enterprises (MSMEs) face in accessing imported components and raw materials due to stringent quality control frameworks.
High-Level Committee Recommendations
- The High-level Committee on Non-Financial Regulatory Reforms (HLC-NFRR) has proposed key changes to ease these challenges.
- The committee, led by NITI Aayog member Rajiv Gauba, discussed issues related to obtaining certifications under Quality Control Orders (QCOs).
Quality Control Orders (QCOs)
- QCOs are legal directives specifying criteria for product quality standards under the Bureau of Indian Standards (BIS) Act, leading to BIS certification.
Key Recommendations
- Reduce the number of technical conformity assessment schemes from ten to two.
- Shift the focus of inspections from factories to the market.
- Consolidate BIS schemes into two categories: simplified procedures for less risky products and elaborate procedures for higher risk aspects.
- Address import challenges posed by QCOs to ease difficulties and costs for MSMEs.
BIS Technical Conformity Schemes
- BIS has formulated 10 schemes, with maximum products under Scheme-I.
- Scheme-I involves independent sampling and proactive surveillance, mostly used by DPIIT and other ministries.
- Scheme-II, used by the Ministry of Electronics and IT, includes desk audits and market surveillance with a certification validity of 2-5 years.
Committee and Reporting
- The HLC-NFRR, constituted by the Cabinet Secretariat, includes ten members from relevant departments and industry chambers.
- The committee submits interim reports to the Department of Economic Affairs monthly.
Statistics and Impact
- BIS has notified 187 QCOs covering 770 products, with 84 QCOs covering 343 products issued in the last three years.
- Recent QCOs cover a range of products, including jute bags, medical textiles, and solar thermal systems.
Government Engagement with MSMEs
- The Department of Consumer Affairs and BIS are increasing engagement with MSMEs to address concerns regarding QCO implementation.
