SMEs and Startups to Benefit from New Quality Control Order (QCO) 2024

QCO 2024: Boosting Quality & Ease of Business for SMEs and Startups | Highlighs In Shorts 

• • • Purpose: Improve product standards for cookware, utensils, and cans.
    • Exemptions: Micro-enterprises with low investments and turnover.
    • Benefits: Grace period, exemptions for imported cans, and R&D unit exemptions.
    • Timeline: Phased rollout from 2025 to support businesses of all sizes.

In a move to align product quality with global standards, the Department for Promotion of Industry and Internal Trade (DPIIT) has announced the Quality Control Order (QCO), 2024 for Cookware, Utensils, and Cans for Foods and Beverages. This initiative aims to foster an ecosystem that emphasises quality while promoting domestic entrepreneurship and attracting investments.

Enhanced Ease of Doing Business with Relaxations for Micro-Enterprises

To support smaller businesses, the QCO provides targeted relaxations aimed at reducing compliance burdens:

• Exemption for Micro-Enterprises: Micro-enterprises registered under the Udyam portal, with investments below ₹25 lakh in plant and machinery and turnover below ₹2 crore, are exempt from the order.
• Legacy Stock Clearance Period: A six-month grace period has been introduced to help businesses clear existing inventories before transitioning to new standards.
• Import Exemptions: Cans filled with powder, semi-solid, liquid, or gas will be exempted from the QCO, easing constraints on international trade.
• R&D Support: Manufacturers will be allowed to import or produce 200 units of cookware, utensils, or cans exclusively for research and development (R&D) purposes, encouraging innovation.

Timeline Extended to Support Domestic Industry

The QCO was originally notified on 10th August 2023, focusing on 5 Indian Standards (IS) and later expanded under the amended order on 15th March 2024, with enforcement initially planned for 1st September 2024. However, after consultations with industry bodies, DPIIT has extended the implementation timeline via an e-Gazette notification issued on 14th October 2024 to address challenges raised by stakeholders.

• For Large and Medium-Scale Manufacturers: The QCO will be effective from 1st April 2025.
• For Small Enterprises: Implementation begins on 1st July 2025.
• For Micro Enterprises: Compliance will be mandatory from 1st October 2025.

These staggered timelines provide businesses with sufficient time to align operations with the revised quality standardswhile preparing for market expansion.

A Step Towards Self-Reliance and Quality Excellence

By promoting high-performance, durable, and dependable products, the QCO supports India’s journey toward becoming a global hub for premium manufacturing. This initiative not only strengthens consumer trust but also fosters the growth of homegrown brands, giving them a competitive edge in both domestic and international markets. The collaborative approach between industry and government is expected to enhance India's standing as a self-reliant economy driven by world-class manufacturing.

As the QCO takes effect in phases, startups, SMEs, and established manufacturers will have the opportunity to position themselves at the forefront of the Make in India movement, contributing to sustainable growth and export competitiveness. The order marks a pivotal step toward manufacturing excellence and reflects the government’s commitment to ease of doing business and industrial development.

With the DPIIT at the helm, India is poised to attract investments, nurture entrepreneurial talent, and build global market leadership by setting new benchmarks in quality and innovation.