Quality control and India’s manufacturing growth

India’s Quality Control Order (QCO), implemented on June 25, 2026, aims to enhance manufacturing standards across various sectors. This initiative is designed to help manufacturers comply with quality regulations while remaining competitive in the global market. Quality control engineers and manufacturing managers must adapt to these changes to ensure compliance and improve production efficiency.

Since its launch, the QCO has expanded rapidly, covering 765 products by the end of 2024, up from just 88 in 2019. This growth reflects the government’s commitment to elevating quality standards, which are essential for integrating Indian firms into global value chains. However, by late 2025, the government began to slow this expansion, revoking several QCOs to address concerns about supply chain disruptions and input availability. This shift indicates a need to balance quality with efficient domestic manufacturing.

The QCO influences not only compliance but also production efficiency. A study by the Centre for Social and Economic Progress (CSEP) found that larger firms, capable of managing QCO compliance costs, experienced a 9.6% increase in production but a 37% decline in gross value added (GVA). This suggests that while larger firms can maintain output, they may struggle with profitability due to rising input costs.

Conversely, smaller firms did not see significant changes in production levels but faced a staggering 47.6% decline in profitability. This disparity highlights the challenges that quality control regulations pose for smaller manufacturers, who often lack the resources to meet compliance demands. The costs associated with compliance can hinder their competitiveness, affecting their sustainability in the market.

Moreover, the QCO’s emphasis on intermediate goods, such as chemicals and textiles, is critical for manufacturing. Many downstream industries rely on these inputs, and any disruptions can lead to significant production delays. Quality control engineers must prioritize compliance with QCOs while ensuring these inputs are seamlessly integrated into their processes. Increased scrutiny on quality control can elevate consumer expectations, complicating the landscape for manufacturers, as noted by QIMA.

Technological advancements are reshaping quality management in India’s manufacturing sector. Automation, data analytics, and artificial intelligence (AI) are becoming essential tools for quality control engineers. These technologies facilitate real-time monitoring of production processes, enabling immediate adjustments to uphold standards.

For instance, AI-driven quality assurance systems can analyze extensive data to identify patterns that may indicate defects, reducing costly recalls and enhancing overall product quality. Manufacturing managers must embrace these technologies, making it crucial for them to acquire skills in digital tools and data analysis.

Additionally, the integration of IoT (Internet of Things) devices in manufacturing enhances traceability and transparency. Quality control engineers can leverage IoT data to monitor product quality throughout the supply chain, providing insights that support both production and regulatory compliance. In an era of heightened consumer expectations for quality, this shift towards data-driven decision-making is vital.

The Global Appropriation report emphasizes that adopting these technologies streamlines compliance and fosters innovation in product development. Companies that embrace these advancements are likely to experience improved efficiency and reduced waste, leading to enhanced profitability. Effectively harnessing data can provide manufacturers with a competitive edge, enabling them to respond swiftly to market demands and regulatory changes.

As the manufacturing landscape evolves, quality assurance professionals must remain informed about technological trends. Continuous education and training in emerging technologies will be essential for engineers and managers aiming to thrive in this competitive environment. Adapting to these changes will not only enhance compliance with QCOs but also drive innovation in product development, helping manufacturers meet both domestic and international quality standards.

The ongoing transformation in quality management practices underscores the necessity for a proactive approach to quality assurance. As manufacturers navigate the complexities of the QCO and technological advancements, the focus must remain on improving product quality while ensuring compliance with evolving regulations.

The next few years will be pivotal as the manufacturing sector adapts to these changes. The balance between quality assurance and regulatory compliance will determine whether the landscape becomes more competitive or poses challenges for smaller players. The answers to these questions will shape the future of India’s manufacturing growth.