The Confederation of Indian Textile Industry (CITI) has raised alarms over the Quality Control Order (QCO) on key input materials, stating that it is harming jobs and stifling growth in the domestic textile sector. In its pre-Budget memorandum to the Finance Ministry, CITI emphasized that the QCO, which blocks the import and sale of materials lacking a Bureau of Indian Standards (BIS) mark, is diminishing the competitiveness of the downstream industry. It is also creating a significant barrier to accessing essential raw materials.
According to CITI, the BIS certification process is particularly challenging for micro, small, and medium enterprises (MSMEs), which are crucial players in the textile industry. The complex and time-consuming process is discouraging these smaller businesses from obtaining the certification, leaving them unable to import essential materials. Moreover, CITI argued that the QCO is inadvertently contributing to the creation of monopolies in the market, with large businesses benefiting from stronger lobbying power and easier access to resources.
The textile body pointed out that countries like Bangladesh and Vietnam do not face such restrictions, allowing their industries to freely access raw materials without any non-tariff barriers (NTBs). In contrast, India's imposition of the QCO on man-made fibre (MMF) and yarn has created an artificial trade barrier, hindering the free flow of these critical inputs. This has resulted in shortages of specialized fibre and yarn varieties, which, in turn, has driven up domestic prices, putting additional strain on the industry.
CITI stressed that the QCO is negatively affecting the textile sector's ability to meet growing demand, particularly for products that require specific, high-quality raw materials. By limiting access to these inputs, the QCO is damaging the overall competitiveness of the Indian textile industry, harming both large and small businesses, and ultimately leading to job losses in the sector.
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