Key relaxations under Quality Control Orders
The Quality Control Orders, issued by line ministries and implemented through BIS, mandate adherence to Indian Standards for selected products. To ensure these regulations do not disrupt MSME operations, the government has introduced multiple exemptions.
Micro enterprises have been granted an additional six months to comply with QCOs, while small enterprises have been given a three-month extension. These timelines provide smaller units adequate time to upgrade processes and align with quality norms.
Import and legacy stock exemptions
Domestic manufacturers importing inputs for producing export-oriented goods have been exempted from QCO requirements. In addition, MSMEs are permitted to import up to 200 units of regulated products exclusively for research and development purposes.
The government has also allowed clearance of legacy stock manufactured or imported before QCO implementation, within six months of the order coming into force. This ensures that existing inventory does not turn into stranded assets.
BIS offers major fee concessions
To reduce the financial burden of certification, BIS has introduced substantial concessions in the annual minimum marking fee. Micro enterprises receive an 80 per cent concession, small enterprises 50 per cent, and medium enterprises 20 per cent.
An additional 10 per cent concession is available for MSMEs located in the North-Eastern states and for women entrepreneur-led units, providing targeted support to priority segments.
Technical flexibility for small manufacturers
BIS has relaxed technical requirements by making in-house laboratories optional for MSMEs. Manufacturers can now utilise BIS-recognised external labs, NABL-accredited facilities, or shared cluster-based laboratories.
The ‘Levels of Control’ under the Scheme of Inspection and Testing have also been made recommendatory. MSMEs can define their own batch sizes and control parameters and communicate them to BIS, allowing operational flexibility.
Transparency in certification process
To improve ease of compliance, BIS has made product certification guidelines publicly available on its official website. Product-specific manuals are also being issued to guide manufacturers through conformity assessment procedures.
These steps aim to improve transparency, reduce procedural delays, and encourage voluntary compliance among MSMEs.
RBI strengthens MSME credit access
Parallel to regulatory easing, the Reserve Bank of India has advised banks to link MSME loans to external benchmarks to improve monetary policy transmission. The interest rate reset period has been reduced to three months under this system.
Banks have also been directed to offer existing MSME borrowers the option to switch to external benchmark-linked rates, ensuring fair and faster transmission of policy rate cuts.
Government-backed credit guarantee and lending norms
The government has operationalised the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME), which provides credit guarantee cover for term loans up to ₹100 crore for equipment and machinery purchases.
Additional measures include priority sector lending targets for MSMEs, mandatory collateral-free loans up to ₹10 lakh for MSE units, and a minimum working capital limit of 20 per cent of projected turnover for loans up to ₹5 crore.
