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.
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