New Delhi, Mar 12 (PTI) The government should withdraw the mandatory quality control norms on steel fasteners, as their implementation will severely disrupt industrial supply chains and create unnecessary regulatory bottlenecks, economic think tank GTRI said on Wednesday.
The Global Trade Research Initiative (GTRI) said the BIS (Bureau of Indian Standards) certification process mandated under the QCO (quality control order) has not approved any foreign or domestic manufacturers, which will halt imports of essential fasteners from March 20.
It added that thousands of small manufacturers producing nuts and bolts may struggle to obtain BIS certification, potentially leading to factory shutdowns and job losses.
BIS approval of foreign manufacturers is a necessary condition for imports as steel fasteners have been notified under the quality control order issued by the Department for Promotion of Industry and Internal Trade (DPIIT).
The QCO was notified in September 2024 and is set to come into effect from March 20. The QCO mandates BIS certification for domestic as well as foreign manufacturers.
"BIS has not yet approved any foreign or domestic manufacturer under the QCO scheme, creating uncertainty and supply chain bottlenecks," GTRI Founder Ajay Srivastava said.
As the March 20 deadline approaches, businesses reliant on imported fasteners are bracing for operational challenges that could hinder production and growth in India's manufacturing sector, he added.
While India produces standard fasteners, it relies on imports for high-end fasteners, which will now be unavailable, affecting critical applications, Srivastava said.
In 2024, India's global imports of steel fasteners amounted to USD 1.1 billion, with key sources including China (USD 306 million), Japan (USD 127 million), South Korea (USD 111 million), Germany (USD 107 million), US (USD 104 million), Thailand (USD 78 million), and Singapore (USD 63 million).
He also said due to the complex BIS approval process and low trade values, many foreign manufacturers are unlikely to register, leading to critical shortages of high-end specialised fasteners.
"The BIS Conformity Assessment process is slow, making it difficult for manufacturers to get timely approvals, leading to business disruptions," he said, adding that the unavailability of imported fasteners will directly impact industries like construction, automobiles and aerospace, machinery, electrical and electronics, shipbuilding, furniture, railways and metro projects, oil, gas, and energy, medical equipment, defence industries.
He added that the government should reconsider the QCO and instead adopt a more pragmatic approach, such as mutual recognition of international certifications or phased regulatory adjustments, to balance quality control with industry needs.
