Page 42 - Plastics News December 2025
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BUSINESS NEWS
appropriate quality, the intention that led to the points to hundreds of QCOs on intermediate and
imposition of QCOs. basic goods that should be eliminated. There-
fore, it's essential to sustain the current momen-
QCOs should typically be introduced where tum by reconsidering additional QCOs that ap-
there's a significant need to ensure that proper ply to intermediate goods, particularly in sectors
quality is maintained in the market. Pharmaceu- like steel, textiles, plastics and chemicals. Many
ticals and safety equipment, where there's a risk of these items are critical inputs for MSMEs, and
of significant and irreversible damage to life or for industries engaged in export-oriented pro-
property, are an example where QCO-type con- duction.
trols do need to be put up. Beyond that, there
are very few cases where a strong conceptual Any reform is not easy. It comes with opposi-
case can be made for QCOs. And when QCOs tion from those who would potentially lose out.
are imposed on intermediate or basic goods, In the case of QCOs as well, this holds true. Par-
they are much more harmful for the long-term adoxically, most requests for QCOs come from
growth of the industry. short-sighted industry and industry bodies, even
though there is much evidence that industry is
There are several proposed QCOs furniture the one most harmed in the long run.
items, like office chairs, storage units, beds and
worktables. But there's a whole spectrum of fur- A key learning across many decades has been
niture quality. Who is to decide what is appropri- that greater forces of competition and flexible
ate for India? Surely, it's the right of the buyer economic climate are the best mechanisms for
to decide what quality-price combination they quality improvements and cost reduction in the
want to buy. Why take away this choice from manufacturing sector, much more than protec-
Indian buyers? If the fear is low-cost Chinese im- tion and subsidies. Overall, the recent withdraw-
ports, then the right tool to prevent their imports als have laid out a constructive path ahead,
is anti-dumping duties, not QCOs. one that aligns regulatory priorities with India's
broader ambition to strengthen manufacturing
A NITI Aayog high-level committee recently rec- competitiveness, enhance ease of doing busi-
ommended the cancellation, suspension or de- ness, and enable startups and MSMEs to better
ferment of several QCOs across a wide range integrate with global value chains.
of products and sectors, recognising the need
to reduce input-cost pressures and strengthen Source – The Economic Times
supply-chain resilience. Independent analysis
42 PLASTICS NEWS December 2025
