Quick Take
- DPIIT notified the Transition Facilitation (Quality Control) Order, 2026 on June 25, 2026.
- The order opens a risk-based alternative compliance pathway across 10 product sectors.
- Firms can source from BIS Scheme II licensees instead of the ISI Mark route.
In This Article
The DPIIT Quality Control Order, formally the Transition Facilitation (Quality Control) Order, 2026, was notified on June 25, 2026, opening an alternative risk-based compliance route for 10 regulated product sectors (PIB).
The Department for Promotion of Industry and Internal Trade (DPIIT) sits under the Ministry of Commerce and Industry. The move targets a long-standing complaint: slow Bureau of Indian Standards (BIS) certification under the older factory-inspection route. The order covers toys, personal protective equipment, air conditioners and compressors, footwear, furniture, and more .
StartupFeed Insight
The real signal here is discretion, not deregulation. The DPIIT Quality Control Order replaces a fixed technical test with a committee that weighs technology, design, and localisation commitments. That helps proven domestic makers, but it can squeeze smaller firms and foreign players without an Indian arm. Hardware founders in electronics, toys, and appliances should watch this closely, because sourcing flexibility could cut input timelines sharply. StartupFeed expects DPIIT to publish detailed operational guidelines, including application timelines and an appeals route, before December 31, 2026. If those guidelines stay vague, the pathway risks becoming a fresh bottleneck. By Avinash.
DPIIT Quality Control Order: Key Facts
The DPIIT Quality Control Order is an alternative compliance framework notified under India’s Quality Control Order (QCO) regime. It lets domestic industry source from manufacturers holding BIS Scheme II licences. Here are the core details, drawn from the official notification (PIB).
| Metric | Detail | Notes |
|---|---|---|
| Order name | Transition Facilitation (Quality Control) Order, 2026 | Notified by DPIIT (PIB) |
| Notification date | June 25, 2026 | Ministry of Commerce and Industry |
| Sectors covered | 10 product categories | Toys, PPE, ACs, compressors, footwear, furniture, more |
| Core mechanism | BIS Scheme II sourcing | Replaces Scheme I (ISI Mark) route (PIB) |
| Compliance benefit | 3 years of clean QCO adherence | No default during the period (PIB) |
| Review body | Implementation Committee | Chaired by DPIIT |
The standout fact is the three-year clause. DPIIT rewards firms that have met QCO requirements for a continuous three-year stretch without any default (PIB).
About DPIIT
The Department for Promotion of Industry and Internal Trade (DPIIT) is a central government body under the Ministry of Commerce and Industry. It frames industrial policy, runs the Startup India programme, and issues Quality Control Orders for regulated products. DPIIT notifies QCOs to protect consumers and lift domestic manufacturing standards. It works with the Bureau of Indian Standards on certification rules across sectors.
What changes for manufacturers?
The DPIIT Quality Control Order changes how companies source certified inputs. Earlier, suppliers needed a licence under Scheme I, the ISI Mark scheme, which involves factory inspections. Now, domestic industry can procure from manufacturers holding licences under Scheme II of Schedule II of the BIS (Conformity Assessment) Regulations, 2018 (PIB). Scheme II is a self-declaration based registration system, so it can be faster to obtain. Permissions rest on technical capability, demonstrated compliance history, and a commitment to technology adoption, design, research, and stronger domestic supply chains (PIB). You can review the exact wording in the official DPIIT notification.
Who qualifies for the new route?
Eligibility under the DPIIT Quality Control Order rests on a firm’s track record and capabilities, not just a single test. The order extends benefits to manufacturers that have shown consistent QCO adherence over three continuous years without default (PIB). An Implementation Committee, chaired by DPIIT and including BIS, the Department of Commerce, the Department of Consumer Affairs, and the Directorate General of Foreign Trade, will examine applications .
The transition facilitation order enables a flexible sourcing framework for industry while upholding quality standards, according to the official DPIIT statement.
So the committee, not a fixed inspection, decides access. That gives DPIIT room to weigh innovation and localisation. It also means clear, published criteria will matter for fairness.
How is industry reacting?
Industry response to the DPIIT Quality Control Order has been cautiously positive, with a clear call for transparency. The Global Trade Research Initiative (GTRI) welcomed the intent but flagged the risk of discretion. Its founder, Ajay Srivastava, called the framework a “QCO Plus” system and warned it could swap one delay for another.
| Route | Basis | Speed signal |
|---|---|---|
| Scheme I (ISI Mark) | Factory inspection | Slower, long-standing complaint |
| Scheme II (new route) | Self-declaration registration | Faster to obtain |
GTRI urged DPIIT to set clear timelines, ideally deciding applications within 60 to 90 days, plus an appeals mechanism. What sets this reform apart is its performance-based design, which rewards a clean compliance record rather than applying one fixed rule to all.
What’s Next
The next milestone is operational detail. GTRI and trade bodies want DPIIT to publish eligibility criteria, documentation rules, and processing timelines, ideally before the end of 2026. A digital application and tracking system would also build trust. Will DPIIT release these guidelines fast enough to make the new route a real win for founders?
Frequently Asked Questions
Last updated: July 01, 2026 at 12:30 IST
Written by Avinash. Published: July 01, 2026. Updated: July 01, 2026. Have a tip? Write to us at editorial@startupfeed.in.
