The Centre this week revoked Quality Control Orders (QCOs) on 14 products, including key chemical intermediates, synthetic fibres and polymer resins widely used in the textile value chain. The move comes as India’s textile sector faces rising stress following large-scale cancellations of US-bound export orders after the imposition of a steep 50% tariff by the United States. Industry groups have warned that the additional compliance burden created by QCOs was further squeezing manufacturers at a time of weakening global demand.
Amitabh Kant, former CEO of NITI Aayog, welcomed the development, calling it the beginning of a long-overdue reset in India’s quality-control framework. “It has finally begun – and it deserves recognition,” he said, noting that multiple ministries have, in the past week alone, withdrawn or amended QCOs covering nearly 76 products.
Kant said the government’s decision reflects a deliberate shift towards supporting businesses, improving ease of manufacturing, and enhancing India’s global competitiveness. “This marks India’s willingness to continuously recalibrate regulation to align with economic vitality and support growth, MSMEs, and their integration into global value chains,” he added. He also congratulated the Prime Minister’s Office, Finance Minister Nirmala Sitharaman and NITI Aayog for driving the course correction.
The government’s latest decision to withdraw 14 QCOs has brought major relief to a textile industry already facing turbulence from shrinking US demand and steep 50% tariffs imposed by Washington earlier this year. The orders, issued by the Ministry of Chemicals and Fertilisers, covered crucial chemical intermediates, synthetic fibres and polymer resins—materials that form the backbone of the textile value chain. Among the items removed from mandatory certification are key inputs such as Terephthalic Acid, Ethylene Glycol, Polyester Industrial Yarn (IDY) and Polyester Staple Fibre (PSF), all of which India continues to import in large quantities. MSMEs in the sector had repeatedly warned that these standards were driving up input costs and slowing production.
The rollback was triggered largely by a Niti Aayog assessment that found the QCO regime misplaced, arguing that imposing strict standards on raw materials instead of finished products had created avoidable bottlenecks. According to the think tank, the rules pushed up raw-material costs by 10–30% compared with global prices because only a handful of domestic manufacturers were certified and international suppliers faced long delays in securing BIS licences. While the Commerce Ministry has defended QCOs in categories like toys and plywood for curbing poor-quality imports, the textile sector’s challenges prompted reconsideration.
Industry bodies now expect other ministries to follow suit, particularly in relation to viscose fibre and specialised textile machinery. Niti Aayog recommended scrapping QCOs on 27 items, suspending them for 112 more and delaying their rollout for 69 upcoming product categories.
The pressure on exporters has intensified after US-bound textile and apparel shipments suffered sharp declines. CITI noted that Indian textile exports to the US—worth nearly $11 billion in 2024–25—fell more than 10% in September 2025 alone, forcing many manufacturers to run below capacity due to shortages and higher prices. The report also observed that no major competing textile-exporting nation mandates factory-level certification for synthetic fibres or yarns, relying instead on voluntary standards and buyer-driven quality checks.
