Niti Aayog Warns: Quality Control Order Could Tilt Market Against MSMEs

According to an internal NITI Aayog report, the sharp rise in Quality Control Orders (QCOs) over the past five years—most of which have impacted raw materials and intermediate products—has not only reduced the competitiveness of Indian industries but has also disproportionately affected small enterprises, resulting in increased market concentration. The report notes that the expansion of standards from 70 to 790 over nine years has disrupted supply chains, raised input costs, and caused production delays. It recommends revoking certain QCOs, especially as MSMEs face financial and logistical challenges, making certification, testing, and inspection processes difficult for small businesses.