Indian Manufacturers Embrace Quality Control Orders

NEW DELHI: The plywood and MDF board industry, which had initially opposed the government's move to impose quality control orders (QCO), is now advocating for their implementation by February. This shift in stance is seen as a significant benefit to Indian consumers, ensuring the quality of products like plywood and MDF boards used in furniture and cabinetry.

"The implementation was postponed by a year on industry demand. But we realize that our narrow thinking has harmed the industry," said N K Aggarwal of Action TESA, highlighting the positive impact on capacity utilization.

Impact on Domestic Industry and Investments

With over 200 items now under QCO, including door hinges, footwear, and steel products, the domestic industry is witnessing a surge in investments. For instance, the door hinges sector has seen investments of Rs 5,000-6,000 crore, and the QCO on cold rolled grain oriented electrical steel (CRGO) has prompted major joint ventures.

"Further delays could result in severe consequences, including the erosion of domestic businesses, loss of employment, and reduced demand for local raw materials," warned Ajay Garg, managing director at E3 Group.

Government's Stance on Quality Standards

The government remains firm on its decision, emphasizing the importance of quality products for Indian consumers. This move aligns with international standards, ensuring that both domestically produced and imported goods meet high-quality benchmarks.