Fastener traders have called on the government to revoke the Quality Control Order (QCO) on fasteners, citing concerns over rising costs, reduced supply, and disrupted production within the country. The traders argue that fasteners are manufactured in small batches yet come in a wide variety, often produced on the same machinery. However, the QCO enforces a stringent “one-product-one-licence” requirement, which they claim leads to duplication, delays, and heightened uncertainty.
Shaunak Rungta, a member of the Central Executive Committee of the Federation of Indian MSMEs (FISME), stated that certain high-quality cross-recessed screws, particularly drywall and chipboard screws, are currently unavailable in India, leaving manufacturers without reliable domestic sourcing options. “The QCO has already reduced my firm’s turnover by around 50 percent, and continued delays risk closure. I urge the government to withdraw this QCO as it affects Indian manufacturing,” Rungta remarked.
He further noted that port delays related to Harmonised System (HS) code confusion exacerbate the situation, increasing uncertainty and transaction expenses. Trader Yusuf Unjahawala indicated that the imposition of Bureau of Indian Standards (BIS) certification on fasteners would adversely affect the manufacturing sector, claiming that the QCO benefits only a select group of manufacturers while marginalizing traders essential to maintaining supply chains.
Fasteners, encompassing bolts, nuts, screws, washers, rivets, and studs, come in numerous variations based on size, strength, coating, and application, and are utilized across various sectors, including automotive, construction, machinery, electronics, railways, aerospace, and infrastructure.
In line with these views, the think tank GTRI highlighted that India imports approximately $1.13 billion worth of fasteners from countries such as China (24.6 percent), Japan (13.3 percent), South Korea (9.9 percent), and Germany (9.8 percent). GTRI Founder Ajay Srivastava stated that many of these imports comprise high-precision, specialized, or technology-intensive fasteners needed for advanced manufacturing applications in electronics, high-end machinery, and automotive components.
Srivastava emphasized that, while fasteners constitute less than 1 percent of the overall product cost, their absence can halt entire production lines. “Any delay—whether from regulatory barriers, certification bottlenecks, or supply disruptions—can disproportionately affect sectors like automotive, infrastructure, and electronics,” he added. He cautioned that restricting trade in these low-cost but high-utility inputs raises overall production costs, undermining manufacturing competitiveness. “Policies must ensure seamless trade flows so industries can access the complete range of fasteners necessary for efficient production,” he concluded.
In 2023, the Department for Promotion of Industry and Internal Trade (DPIIT) issued the Quality Control Order (QCO) concerning nuts, fasteners, and bolts. Under this regime, importers are mandated to secure BIS certification for specified products before importing them into India.
