How have Quality Control Orders (QCOs) impacted India's manufacturing sector?

QCOs introduced by the Indian government have restricted Chinese imports, leading to a surge in domestic production and capacity expansion across various sectors, including furniture fittings, household goods, and small-scale manufacturing.

How have Indian exports been affected by the increased domestic production?

With global chains sourcing more products from India, the country's exports have picked up in recent months, particularly to markets like Japan and the UAE, as a result of the increased domestic manufacturing capacity driven by the QCOs.

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Indian Firms Expand Capacity, Boost Exports as QCOs Restrict Chinese Imports

Q: What is the response from Indian manufacturers to the potential rollback of QCOs?

Indian industry leaders, such as Frank Scholeder of Hafele India, have advocated for policy stability to sustain the 'Make in India' initiative and boost exports, warning that a rollback of QCOs could slow down the manufacturing growth.

13 Nov

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Summary

Indian manufacturers triple domestic sourcing to 30% in 3 years
75 new licenses issued to domestic firms since QCOs introduced
Small units in Amritsar expand capacity 2-3 times due to QCOs

Indian Firms Expand Capacity, Boost Exports as QCOs Restrict Chinese Imports

As of November 13th, 2025, India's push for local manufacturing is gaining significant traction, with industry leaders calling for the retention of quality control orders (QCOs) that have restricted imports from China and strengthened domestic production.

Over the past three years, several Indian firms have expanded their domestic sourcing and production capabilities. Hafele India, the local arm of the German furniture fittings and architectural hardware firm, has tripled its share of domestically sourced products to 30%. Similarly, the introduction of QCOs has led to the issuance of 75 new licenses to domestic manufacturers across various sectors. Leading brands like Milton, Cello, and Borosil are now increasingly focusing on local production.

The trend is also visible in the small-scale manufacturing sector. Jasbir Singh, representing screw manufacturers in North India, highlighted that small units in Amritsar have expanded their capacity by two to three times in recent months, largely due to the QCOs restricting cheaper Chinese imports.

Despite these gains, the government's recent review of QCOs and proposals to ease some of the restrictions have caused concern among manufacturers. Industry leaders, such as Frank Scholeder of Hafele India, have advocated for policy stability to sustain the 'Make in India' initiative and boost exports, which have picked up in recent months, with global chains sourcing products from India.

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