An October 6, 2025 order by the Ministry of Steel extending the timeline of the implementation of Quality Control Order (QCO) guideline for stainless steel flat products until December 31, 2025, has raised concerns that the move could dilute the urgency of enforcing quality standards.
An order of Ministry of Steel dated June 13, 2025 had made it mandatory for input materials to conform to Bureau of Indian Standards (BIS) norms.
Industry experts have cautioned that any dilution or deferment of this norm could undermine India’s efforts to build a globally competitive manufacturing ecosystem.
They believe such deferments could expose Indian consumers to substandard, unsafe, and non-compliant products, while also opening the market to unregulated imports that could adversely impact domestic manufacturers.
Aruna Sharma, IAS, Practitioner Development Economist, and former Secretary, Government of India said, “The implementation of QCO is absolutely a good step ahead for the steel sector. QCO ensures the improvement of steel quality, which is crucial as the steel input in building construction is now nearly 20 to 30%.”
“This is a question of public safety, not just quality or standards. However, personally, I feel more and more extensions are not good because the seriousness does not come until you have an examination date. While the December deadline is not very far off, there should be no further extension to this critical move. Furthermore, for MSMEs, quality is not a matter of funds but of process; the investment needed is vital to make them much more competitive,” she said.
According to analysts the QCO framework, which rests on the principle that good inputs yield good outputs, is considered essential to safeguard public interest, national safety, and industrial integrity.
The domestic market has long faced the challenge of cheap and low-quality stainless-steel imports, particularly from China and ASEAN countries such as Vietnam, Thailand, and Malaysia, they said adding these imported products, often rerouted through trade agreements to evade scrutiny, are sold at unsustainably low prices, creating an uneven playing field for domestic manufacturers who invest heavily in quality control, testing, and skilled manpower.
The steel and stainless-steel manufacturing ecosystem in India is significantly driven by micro, small, and medium enterprises (MSMEs), both as producers and as downstream users. While the rationale behind the QCO is widely accepted, MSMEs require greater support in navigating compliance challenges, such as certification costs, limited access to accredited testing facilities, and gaps in technical know-how, they said.
Without adequate institutional assistance, smaller manufacturers may be pushed out of formal systems, undermining the intent of the quality framework, they added.
“We certainly value good quality and support the use of quality materials in several applications of the country. However, many of us operate with limited financial and technical resources and face administrative challenges in meeting quality standards,” an MSME entrepreneur from the Cold-rolled Stainless Steel Coil Manufacturing sector said.
“With institutional support and handholding to help MSMEs like us, adopting and implementing quality-first reforms will become much easier,” he added.
Analysts said concerns about inadequate domestic capacity to meet demand were misplaced as India’s steel production capacity is sufficient. The perception of shortage is often fuelled by traders seeking to justify the import of low-cost, substandard materials for creating their own profits, they said. Comparing domestically produced high-quality steel with cheaper, non-compliant imports is seen as neither fair nor sustainable, as quality products naturally entail higher costs due to rigorous standards and systems, they added.
They emphasized that the solution lies not in diluting QCOs but in strengthening domestic capacity through focused R&D, ecosystem upskilling, and inclusive compliance mechanisms.
Published – November 13, 2025 11:05 pm IST
