Quality Control Orders with exemptions and relaxations for MSMEs

• 16 Dec 2025
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The Government of India, via Bureau of Indian Standards (BIS) under the Department of Consumer Affairs, Ministry of Consumer Affairs, Food & Public Distribution, implements Quality Control Orders (QCOs) in phases. 

These orders are issued by line ministries and come with exemptions and relaxations for Micro, Small and Medium Enterprises (MSMEs) to ensure that they do not disrupt domestic production. 

Here are some of the key relaxations and exemptions :-

• An additional six-month extension for micro enterprises. 

• A three-month extension for small enterprises.

• Provisions for the clearance of legacy stock (goods manufactured or imported before the implementation of QCOs) within six months from the effective date.

• Exemptions for imports made by domestic manufacturers for the production of export-oriented products.

• Exemptions for the import of up to 200 units for research and development purposes. 

On the basis of feedback on certification processes, BIS has implemented the below-stated financial and technical relaxations to the MSME industry :-

• To extend support to MSMEs in the country, BIS offers financial incentives in the form of annual minimum marking fee concessions: 80% for Micro Enterprises, 50% for Small Enterprises and 20% for Medium Enterprises. Additionally, there is a 10% extra concession for enterprises that are located within northeastern areas or for women-owned MSME units. 

• The requirement for MSME units to maintain an in-house laboratory is now optional. MSME units may utilize services from outside BIS-recognized laboratories, NABL-accredited labs, or share resources through cluster-based labs or laboratories of other manufacturing units. Furthermore, the 'Levels of Control' in the Scheme of Inspection and Testing (SIT) have become recommendatory. Manufacturers can define their own control unit, batch or lot as well as their own levels of control and inform BIS accordingly. 

• BIS has also made the product certification process guidelines publicly available on its website and is issuing product-specific manuals as guidance documents for conformity assessment according to various Indian Standards.

According to information RBI provided, the central bank has advised the banks to link loans to MSMEs to an external benchmark with a view to improve monetary policy transmission. Under the external benchmark system, the RBI has now reduced the loan interest reset period to three months. 

To ensure that existing borrowers also benefit from the external benchmark based interest rate regime, the RBI has further directed banks to offer a switchover option on mutually agreed terms. 

In addition, the RBI has introduced several other measures to improve credit flow to the MSME sector, some of which are outlined below :-

• To assist MSMEs in accessing loans for business growth, the government announced Mutual Credit Guarantee Scheme for MSMEs. Under this scheme, MSMEs get credit guarantee. This way, it’s easier for them to obtain loans, especially for buying necessary equipment and machinery. 

• Under the scheme, credit guarantee cover is provided to lenders (Scheduled Commercial Banks, All India Financial Institutions, NBFCs) for their term loans up to Rs.100 crore to MSMEs for their projects involving purchase of equipment or machinery.

• Priority Sector guidelines prescribe specific targets for lending to the MSME sector.

• Scheduled Commercial Banks must not accept collateral security for loans up to Rs. 10 lakh extended to units in the MSE sector. 

• Computation of working capital requirements of MSE units must be at least 20% of the projected annual turnover for borrowal limits up to Rs. 5 crore.

The Minister of State for Micro, Small and Medium Enterprises (Sushri Shobha Karandlaje) provided this information as a written response at the Lok Sabha.

Source: Press Information Bureau (PIB)