Quality control orders (QCOs), whose numbers have risen rapidly in recent years, have strengthened Indian manufacturing. Yet, the compliance burden is uneven, rendering them an entry barrier for small enterprises.
Orders have curbed inferior-grade imports, even as it has placed many manufacturers at a disadvantage. Consumers must enjoy the same quality of goods as exports, but are also likely to face supply disruptions due to clearance delays.
GoI must reconcile these conflicts within its quality upgrade programme. Over-diluting the rules will affect competitiveness of India's manufacturing exports. Relaxations should be allowed on merits of specific complaints.
Quality guidelines are a policy-induced effort to raise competitiveness in select industrial segments. Issues of policy alignment across the supply chain need to be addressed. Transition pathways must be created to allow lagging sections to catch up with those that have acquired globally acceptable production benchmarks. This must be a continuous process with widening coverage until quality becomes an integral part of manufacturing.
Since the initiative is a top-down approach, adjustment mechanisms should be available, and specific interventions would be needed in cases of chronic underperformance.
There is a chicken-and-egg issue with quality. Manufacturers must be able to deliver acceptable quality to consumers to scale up production. Yet, production scale allows for easier adjustment to higher product standards. Policy must be designed to offer support to small firms so that they can match their bigger rivals in quality.
Alongside capital, technical assistance must be available to them. This is typically provided within the supply chain through vendor development measures. Since PLIs are time-bound, small manufacturers have a specified window to attain production standards.
Yet, the process is dynamic until specific industries attain a global edge in quality. And it doesn't end there. Once a firm is at the top of the heap, it must compete with itself.
Orders have curbed inferior-grade imports, even as it has placed many manufacturers at a disadvantage. Consumers must enjoy the same quality of goods as exports, but are also likely to face supply disruptions due to clearance delays.
GoI must reconcile these conflicts within its quality upgrade programme. Over-diluting the rules will affect competitiveness of India's manufacturing exports. Relaxations should be allowed on merits of specific complaints.
Quality guidelines are a policy-induced effort to raise competitiveness in select industrial segments. Issues of policy alignment across the supply chain need to be addressed. Transition pathways must be created to allow lagging sections to catch up with those that have acquired globally acceptable production benchmarks. This must be a continuous process with widening coverage until quality becomes an integral part of manufacturing.
Since the initiative is a top-down approach, adjustment mechanisms should be available, and specific interventions would be needed in cases of chronic underperformance.
There is a chicken-and-egg issue with quality. Manufacturers must be able to deliver acceptable quality to consumers to scale up production. Yet, production scale allows for easier adjustment to higher product standards. Policy must be designed to offer support to small firms so that they can match their bigger rivals in quality.
Alongside capital, technical assistance must be available to them. This is typically provided within the supply chain through vendor development measures. Since PLIs are time-bound, small manufacturers have a specified window to attain production standards.
Yet, the process is dynamic until specific industries attain a global edge in quality. And it doesn't end there. Once a firm is at the top of the heap, it must compete with itself.
