India eases quality control norms on key chemicals imported from the US, China

The Centre has withdrawn quality control orders (QCOs) for three key industrial chemicals: acetic acid, methanol, and aniline to ease compliance burdens for domestic manufacturers, said a 23 July notification.

These chemicals are critical inputs for sectors such as pharmaceuticals, textiles, dyes and intermediates, paints, adhesives, and agrochemicals.

These QCOs, originally issued in August 2019, mandated that manufacturers and importers of these chemicals obtain Bureau of Indian Standards (BIS) certification to sell their products in the Indian market.

India sources significant quantities of acetic acid and aniline from China and the US, while methanol is primarily imported from Gulf countries.

With the withdrawal of QCOs—a form of non-tariff barrier that mandates strict compliance for both domestic and imported goods—these chemicals will no longer require compliance with compulsory BIS standards, thereby removing a layer of regulatory control that many in the industry viewed as restrictive and costly.

Mint reported on 13 December 2024 that the government may ease stringent quality control rules, criticized by local manufacturers and seen as a potential trigger for supply shortages.

“The move is seen as a softening of the government’s stance to support manufacturing, in contrast to its broader push to tighten quality controls across sectors,” a senior executive from a chemical manufacturing company said on the condition of anonymity.

Quality control

The decision, taken after consultations with the BIS, comes at a time when protectionist barriers are rising globally, and India itself is subjecting a wide range of domestic and imported goods to closer scrutiny.

A nationwide exercise to improve product standards, involving 37 ministries, is currently underway, Mint reported on 10 February 2025.

As part of the government’s ongoing quality enforcement drive, over 1,500 products are expected to be brought under stringent BIS quality norms by the end of 2025-26.

A total of 758 products are still regulated through QCOs.

In 2023, India imported acetic acid worth around $12 million from the US, compared to that worth over $186 million from China, according to data from the World Integrated Trade Solution (WITS).

Similarly, India sourced aniline and its salts worth around $2.79 million from the US, while imports of the same from China stood at $21.6 million during the same period.

The withdrawal of QCOs on key industrial chemicals will offer much-needed breathing space to small and medium enterprises that were struggling with certification costs and supply disruptions, said Vinod Kumar, president of the India SME Forum.

“For many SMEs, especially those dependent on imported raw materials, the mandatory BIS compliance was becoming a bottleneck. This move will help ease sourcing constraints and reduce compliance burdens, allowing them to focus on manufacturing and competitiveness,” Kumar said.

“It’s a welcome move that will help boost the manufacturing of chemicals in India,” said Kalyan Goswami, director general of the Agro Chem Federation of India (ACFI). “Easing regulatory burdens will support domestic players and enhance competitiveness,” he said.

India’s exports of chemical and allied products stood at $130.73 billion in 2022-23, which declined to $108.59 billion in 2023-24.