DPIIT notifies Transition Facilitation QCO 2026 to ease supply chain compliance
Synopsis
DPIIT's Transition Facilitation QCO 2026 quietly rewrites how Indian manufacturers access quality-compliant supply chains — replacing the all-or-nothing ISI Mark route with a risk-based mechanism that rewards compliance track records. For industries straining under tight QCO timelines, this could be the breathing room that determines whether domestic supply chains scale or stall.
Key Takeaways
DPIIT notified the Transition Facilitation (Quality Control) Order, 2026 on 25 June 2026 .
The order allows sourcing from manufacturers under BIS Scheme II as an alternative to the ISI Mark (Scheme I) .
Eligibility is based on technical capability , compliance history, technology adoption, and domestic supply chain development.
Manufacturers with three consecutive years of uninterrupted QCO compliance qualify for extended benefits.
The initiative aims to reduce compliance bottlenecks and deepen India's integration with global supply chains .
The Department for Promotion of Industry and Internal Trade (DPIIT) on 25 June 2026 notified the Transition Facilitation (Quality Control) Order, 2026, introducing a risk-based compliance mechanism designed to help domestic industry meet quality standards while supporting supply chain resilience and technological advancement. The order marks a structural shift in how India administers Quality Control Orders (QCOs) for critical products.
What the Order Introduces
The new framework allows domestic manufacturers to procure supplies from producers holding licences under Scheme II of Schedule II of the Bureau of Indian Standards (BIS) (Conformity Assessment) Regulations, 2018 — as an alternative to the conventional Scheme I (ISI Mark Scheme). This flexibility is intended to reduce sourcing bottlenecks without compromising product safety or standards compliance.
Access to the alternative mechanism will be determined by a set of criteria: technical capability, a demonstrated compliance history, commitment to technology adoption, investment in design and research, and efforts to strengthen domestic supply chain capabilities.
Rewarding Consistent Compliance
The order includes a specific provision for manufacturers that have maintained uninterrupted adherence to QCO requirements for three consecutive years without any default. Such manufacturers will be eligible for extended benefits under the mechanism, recognising sustained quality performance and incentivising continued standards compliance.
This provision signals a deliberate policy choice to reward track records over paperwork alone — a notable departure from purely procedural compliance models.
What the Government Said
'The transition facilitation order enables a flexible sourcing framework for industry while upholding quality standards,' the DPIIT said in an official statement. 'The Union government is working to build a robust quality ecosystem by ensuring the availability of safe, reliable and standards-compliant products.'
The statement further noted that the order 'is expected to support technological modernisation, innovation and the strengthening of India's manufacturing ecosystem' by providing an alternative compliance route.
Impact on Industry and Supply Chains
The initiative is expected to reduce compliance bottlenecks that have, in some cases, slowed procurement and production timelines for manufacturers operating under existing QCO mandates. By broadening the sourcing framework, the Centre aims to deepen domestic value chains and accelerate India's integration with global supply networks.
Notably, this order builds on a broader push by DPIIT to expand QCO coverage across critical product categories — a drive that has at times drawn industry feedback about transition timelines being too compressed for smaller manufacturers to adapt.
What Comes Next
Industry bodies and manufacturers will now assess eligibility under the new mechanism. The order's risk-based approach places the onus on applicants to demonstrate compliance credentials, making documentation and audit readiness central to accessing its benefits. Observers expect DPIIT to issue operational guidelines clarifying the application process and timelines in the coming weeks.
Point of View
Leaving manufacturers caught between compliance deadlines and sourcing gaps. The risk-based eligibility model is sensible in principle, but its credibility hinges on how rigorously DPIIT verifies 'demonstrated compliance history' — a metric that is easy to game without independent audit. The three-year continuous compliance clause is the order's strongest element, but it will only matter if enforcement of the underlying QCOs has been consistent, which has not always been the case. The real test is whether this mechanism reduces genuine bottlenecks or simply creates a parallel track that dilutes the quality standards it claims to uphold.
NationPress
26 Jun 2026
Frequently Asked Questions
What is the Transition Facilitation (Quality Control) Order, 2026?
It is a DPIIT notification issued on 25 June 2026 that introduces a risk-based alternative compliance mechanism under existing Quality Control Orders, allowing domestic manufacturers to source from BIS Scheme II-licensed producers instead of being restricted to the ISI Mark (Scheme I) route. The order aims to ease supply chain pressures while maintaining product quality and consumer safety standards.
How does the new order differ from the existing ISI Mark requirement?
Under the existing framework, procurement was typically required from ISI Mark (Scheme I) licensed manufacturers. The new order permits sourcing from manufacturers licensed under Scheme II of the BIS Conformity Assessment Regulations, 2018, provided they meet criteria such as technical capability, compliance history, and commitment to technology advancement.
Who qualifies for benefits under the Transition Facilitation QCO 2026?
Manufacturers that meet criteria including demonstrated technical capability, a consistent compliance track record, commitment to technology adoption, and domestic supply chain development are eligible. Additionally, manufacturers with three consecutive years of uninterrupted QCO compliance without any default receive extended benefits under the order.
Why has DPIIT introduced this alternative compliance mechanism?
The mechanism is intended to reduce compliance bottlenecks that have slowed procurement and production for manufacturers operating under existing QCO mandates. It seeks to support technological modernisation, innovation, and the strengthening of India's manufacturing ecosystem while maintaining quality assurance and consumer protection.
What is the expected impact on India's supply chains?
The order is expected to strengthen domestic value chains, promote technology advancement, and enhance India's integration with global supply networks. By broadening sourcing options, it aims to reduce disruptions caused by tight QCO transition timelines, particularly for industries where compliant domestic suppliers are limited.
