DPIIT Notifies Transition Facilitation Order To Ease Compliance And Strengthen Supply Chains

Corporate Update

DPIIT Notifies Transition Facilitation Order To Ease Compliance And Strengthen Supply Chains

New framework balances quality control with industry flexibility

The Department for Promotion of Industry and Internal Trade (DPIIT) has notified the Transition Facilitation (Quality Control) Order, 2026, aimed at strengthening India’s quality ecosystem while making compliance easier for industry.

The move is designed to maintain strict product quality standards while also giving manufacturers more flexibility in sourcing and compliance processes. Officials said the order is intended to support innovation, improve competitiveness and make supply chains more resilient.

Focus on safe and standardised products

The government has been expanding Quality Control Orders (QCOs) across key product categories to ensure safe, reliable and standard-compliant goods in the market. These rules are also meant to improve manufacturing practices and raise overall product quality in India.

The new Transition Facilitation Order builds on this framework but introduces a more flexible compliance pathway for industry.

Alternative compliance route introduced

Under the new system, industry will be allowed to source materials from manufacturers registered under Scheme II of the Bureau of Indian Standards (BIS) Conformity Assessment Regulations, 2018, instead of being limited to the stricter ISI Mark-based Scheme I.

Approval under this mechanism will depend on:

technical capability of the manufacturer
past compliance record
ability to adopt new technology and innovation
efforts to strengthen domestic supply chains

This risk-based approach is designed to reduce regulatory pressure without weakening quality standards.

Recognition for compliant manufacturers

The order also provides benefits to manufacturers who have maintained continuous compliance with QCO requirements for at least three years without any violations.

This is intended to reward consistent performers and encourage long-term adherence to quality norms, while also reducing unnecessary procedural burden for trusted industry players.

Boost to innovation and supply chain strength

Officials said the reform is aimed at supporting technology upgradation, innovation and modern manufacturing practices. By easing compliance bottlenecks, the government expects companies to focus more on efficiency, design improvement and research-led production.

The framework is also expected to strengthen domestic value chains by improving access to compliant suppliers within India.

Expected impact on industry competitiveness

According to DPIIT, the Transition Facilitation Order will help reduce compliance friction while maintaining strong quality safeguards for consumers.

The reform is expected to:

improve ease of doing business
strengthen domestic manufacturing ecosystems
enhance integration with global supply chains
ensure continued consumer confidence in product quality

In simple terms, the order aims to make compliance easier for industry while keeping India’s quality standards intact and globally competitive.

The government has been expanding Quality Control Orders (QCOs) across key product categories to ensure safe, reliable and standard-compliant goods in the market. These rules are also meant to improve manufacturing practices and raise overall product quality in India. The new Transition Facilitation Order builds on this framework but introduces a more flexible compliance pathway for industry.

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