India notifies QCO enabling flexible sourcing framework for some sectors

New Delhi: India has notified the Transition Facilitation (Quality Control) Order, 2026, introducing a flexible sourcing framework for certain industries to balance regulatory compliance with innovation, technological advancement and supply chain resilience.

The Department for Promotion of Industry and Internal Trade (DPIIT) said that the QCO introduces an alternative risk-based compliance mechanism to facilitate a smooth transition for industry while maintaining quality assurance and consumer protection.

“Permissions under the mechanism will be granted based on technical capability, demonstrated compliance history and commitment towards technology advancement or adoption, development of design and research capabilities, innovation and strengthening domestic supply chain capabilities,” the DPIIT said.


The order, which will be in place for five years, covers toys, footwear, air conditioners, electrical appliances, furniture and hinges, which are governed by their respective QCOs.

The Order also extends its benefits to manufacturers that have demonstrated consistent adherence to QCO requirements over a continuous period of three years without any default. The provision recognises sustained compliance with quality requirements and encourages continued adherence to prescribed standards.

The initiative is expected to strengthen domestic value chains, promote technology advancement, reduce compliance bottlenecks and enhance India's integration with global supply chains, while reinforcing consumer confidence in the quality and safety of products available in the Indian market, according to the department.