New Delhi, Fastener traders on Sunday urged the government to withdraw the quality control order (QCO) on the product as it is raising costs, cutting supply, and disrupting production in the country.
They said that fasteners are produced in small batches but in a huge variety, often on the same machine, yet the QCO imposes a rigid "one-product-one-licence" system that creates duplication, delays, and uncertainty.
Shaunak Rungta, Central Executive Committee Member, Federation of Indian MSMEs (FISME), said that quality cross-recessed screws, particularly drywall and chipboard screws, are not presently available in India, leaving firms without viable domestic sourcing options.
"The QCO has already reduced my firm's turnover by around 50 per cent, and continued delays risk closure. I will urge the government to withdraw this QCO as it will impact Indian manufacturing also," Rungta said.
He added that the problem is compounded by port delays resulting from Harmonised System (HS) code confusion, which increases uncertainty and transaction costs.
Yusuf Unjahawala, a trader dealing in fasteners, said the imposition of BIS certification on these products would impact the manufacturing sector.
He said that the QCO is benefiting only a handful of manufacturers while marginalising traders who play a key role in keeping the supply chain moving.
Fasteners include bolts, nuts, screws, washers, rivets, and studs, made in countless variants based on size, strength (grade), coating, and application.
They are used across almost every sector of the economy -- automobiles, construction, machinery, electronics, railways, aerospace, and infrastructure.
Echoing views, think tank GTRI said India imports USD 1.13 billion worth of fasteners from countries like China (24.6 per cent), Japan (13.3 per cent), South Korea (9.9 per cent), and Germany (9.8 per cent).
"These imports typically consist of high-precision, specialised, or technology-intensive fasteners required for advanced manufacturing segments such as electronics, high-end machinery, and automotive components," GTRI Founder Ajay Srivastava said.
He said that fasteners account for less than 1 per cent of the final product cost, but their absence can halt entire production lines.
Any delay, whether due to regulatory barriers, certification bottlenecks, or supply disruptions, can disproportionately impact industries like automobiles, infrastructure, and electronics, he added.
"Restricting trade in such a low-value but high-utility input raises overall production costs and undermines manufacturing competitiveness. Policies must therefore ensure seamless trade flows so that industries have timely access to the full range of fasteners needed to sustain efficient production," Srivastava said.
In 2023, the Department for Promotion of Industry and Internal Trade (DPIIT) issued Quality Control Order (QCO) for nuts, fasteners and bolts. Under the QCO regime, importers are required to obtain BIS certification for notified products before importing them into India.
They said that fasteners are produced in small batches but in a huge variety, often on the same machine, yet the QCO imposes a rigid "one-product-one-licence" system that creates duplication, delays, and uncertainty.
Shaunak Rungta, Central Executive Committee Member, Federation of Indian MSMEs (FISME), said that quality cross-recessed screws, particularly drywall and chipboard screws, are not presently available in India, leaving firms without viable domestic sourcing options.
"The QCO has already reduced my firm's turnover by around 50 per cent, and continued delays risk closure. I will urge the government to withdraw this QCO as it will impact Indian manufacturing also," Rungta said.
He added that the problem is compounded by port delays resulting from Harmonised System (HS) code confusion, which increases uncertainty and transaction costs.
Yusuf Unjahawala, a trader dealing in fasteners, said the imposition of BIS certification on these products would impact the manufacturing sector.
He said that the QCO is benefiting only a handful of manufacturers while marginalising traders who play a key role in keeping the supply chain moving.
Fasteners include bolts, nuts, screws, washers, rivets, and studs, made in countless variants based on size, strength (grade), coating, and application.
They are used across almost every sector of the economy -- automobiles, construction, machinery, electronics, railways, aerospace, and infrastructure.
Echoing views, think tank GTRI said India imports USD 1.13 billion worth of fasteners from countries like China (24.6 per cent), Japan (13.3 per cent), South Korea (9.9 per cent), and Germany (9.8 per cent).
"These imports typically consist of high-precision, specialised, or technology-intensive fasteners required for advanced manufacturing segments such as electronics, high-end machinery, and automotive components," GTRI Founder Ajay Srivastava said.
He said that fasteners account for less than 1 per cent of the final product cost, but their absence can halt entire production lines.
Any delay, whether due to regulatory barriers, certification bottlenecks, or supply disruptions, can disproportionately impact industries like automobiles, infrastructure, and electronics, he added.
"Restricting trade in such a low-value but high-utility input raises overall production costs and undermines manufacturing competitiveness. Policies must therefore ensure seamless trade flows so that industries have timely access to the full range of fasteners needed to sustain efficient production," Srivastava said.
In 2023, the Department for Promotion of Industry and Internal Trade (DPIIT) issued Quality Control Order (QCO) for nuts, fasteners and bolts. Under the QCO regime, importers are required to obtain BIS certification for notified products before importing them into India.
