New quality control orders for steel parts may lead to factory shutdowns, job losses: GTRI

India faces the risk of widespread factory shutdowns and job losses, as import of steel fasteners, including nuts, bolts, screws, may get halted due to the implementation of quality control orders (QCOs) from next week, think tank Global Trade Research Initiative said Wednesday.

The Department for Promotion of Industry and Internal Trade (DPIIT) had issued the QCO in September last year and it will be implemented in a phased manner. It will be implemented for all imports and large firms from March 20 while for small and micro firms, the order will come into effect from June 20 and September 20, respectively.

India produces standard fasteners but relies on imports for high-end fasteners. Steel fasteners are essential for stability, durability and safety across various industrial sectors.


GTRI said that the cumbersome BIS approval process discourages foreign manufacturers from registering due to complex procedures and low trade volumes leading to critical shortages.

“Additionally, customs clearance delays caused by confusion over HS Code classifications will add to costs and inefficiencies, impacting businesses already struggling with supply chain disruptions,” GTRI founder Ajay Srivastava said, adding that the QCO risks widespread shutdowns of small manufacturing firms that may find it difficult to obtain certification, leading to job losses and industrial stagnation.

It suggested the government to reconsider the QCO and instead adopt a more pragmatic approach, such as mutual recognition of international certifications or phased regulatory adjustments, to balance quality control with industry needs.

In 2024, India’s global imports of steel fasteners amounted to $1.1 billion, with those coming from China pegged at $306 million, followed by Japan at $127 million, South Korea at $111 million, Germany at $107 million, and the US at $104 million.