'Won't blame bureaucracy alone': Amitabh Kant warns QCOs are 'protectionism at its worst', making India uncompetitive

Former NITI Aayog CEO Amitabh Kant, in his latest podcast, has spoken against the government's expanding use of Quality Control Orders (QCOs) and suggested that they should not be imposed on inputs. He said quality control orders are a "protectionism in its worst form" and are making the Indian industry "highly globally uncompetitive", particularly hurting job creation and MSMEs.

Speaking to Groww's Monika Halan, Kant said the QCO regime had spread in a very rampant manner across more than 760 commodities and sectors, with a significant number imposed on inputs and intermediates rather than final goods. "My view is that quality control orders have been protectionism in its worst form, especially because many of these QCOs have been imposed on inputs and intermediates," he said. "That has put a huge burden on MSMEs in India and is making them totally uncompetitive in global value chains."

When asked about a wide range of products likely to come under QCOs by March 2026, including electric knives, electric noodle makers, and electric potato peelers, the former G-20 Sherpa said the unchecked expansion of non-tariff barriers had hurt India's growth story by driving up costs for end manufacturers. "You do it for one, two or three products, that's fine. But to spread it in such a wide, rampant manner has impacted India's growth and made inputs and raw materials very expensive for manufacturers," he said.

Citing the textile sector as an example, Kant said India's ambition to become a global champion in man-made fibres - where nearly 80% of global trade is concentrated - was being undermined by restrictive policies on inputs. "You have just two large manufacturers providing inputs at 35–40% higher prices, and you don't allow imports. That is killing job creation and India's ability to penetrate global markets," he said.

Kant welcomed the rollback of certain QCOs, arguing that such orders should never be imposed on inputs, intermediates or components. "My view is clear, never put QCOs on inputs and intermediates," he said.

Responding to a question on whether QCOs were justified for final goods, Kant said they could be considered, but only on a case-by-case basis after detailed analysis. "If the final product is impacting domestic manufacturing and you want to encourage production here, that's fine. But it has to follow due process," he said. 

He also cautioned against leaving such decisions to a single ministry. "It can't be left to one ministry. If you leave it to one ministry, it goes haywire," Kant said, calling for an inter-ministerial mechanism with stakeholder consultations, especially with MSMEs. "In the last year, there have been almost 500 QCOs without proper hearings or due process. MSMEs are not being heard. Every day, there is a new quality control order. That has been a nightmare," he said.

Asked whether the bureaucracy was to blame, Kant said the issue went beyond officials alone. "I won't blame the bureaucracy alone. There has been a political process involved, though not at the highest level," he said. "If you want to make India a manufacturing nation, we must be very clear that we want to penetrate global value chains, which would require us to import inputs."