The Department for Promotion of Industry and Internal Trade (DPIIT)’s new Transition Facilitation Order introduces a risk-based compliance pathway for India’s furniture industry, alongside other selected industries,. The framework aims to ease supply-chain bottlenecks without compromising quality standards. Experts however say its success will ultimately depend on implementation and its ability to support both global manufacturers and domestic players.
The Transition Facilitation (Quality Control) Order, 2026 (TFQCO) establishes an alternative, risk-based compliance mechanism for eligible companies covered under ten existing QCOs. Among these are the Furniture (Quality Control) Order, 2025 and the Hinges (Quality Control) Order, 2025—making the framework particularly relevant to India’s furniture, cabinetry and hardware ecosystem. Other sectors covered include toys, footwear, air conditioners and selected domestic electrical appliances.
Rather than relaxing quality standards, the framework seeks to address a challenge that has emerged as QCO implementation has expanded: how to maintain product quality while avoiding unnecessary disruption to manufacturing, investment and globally integrated
supply chains.
A Different Compliance Model
Unlike previous QCOs, which generally required manufacturers to obtain BIS certification under Scheme I (ISI Mark), the new framework allows eligible companies, subject to approval by an Implementation Committee, to source specified products from manufacturers certified under BIS Scheme II, within defined quantity and time limits. The framework will remain in force for five years, while applications will be accepted during the first two years from its commencement.
According to Anupam Kaul, former Director, Bureau of Indian Standards (BIS) and independent strategic advisor, this represents a significant departure from India’s existing conformity assessment architecture.
Scheme I is a continuous certification regime requiring factory inspection by BIS officials, selection of production samples for testing, post-licence surveillance and adherence to an agreed quality-control system.
Scheme II, by contrast, is based on registration supported by testing of a prototype product. It does not require routine factory appraisal before registration, although market surveillance continues after products enter the market.
“This is the first time that a product can effectively move through two different conformity assessment routes, depending not on the manufacturer, but on the credibility and capability of the applicant seeking permission under the Transition Facilitation framework,” Kaul
explains.
Compliance Linked to Capability Building
One of the most significant features of the new framework is that compliance facilitation is directly linked to investment and supply-chain development within India.
Applicants must demonstrate technical capability, effective quality management systems, a strong compliance record and a commitment to strengthen manufacturing and supply-chain capability in India through technology adoption, design capability or research and development.
The implementation guidelines envisage two broad pathways. Companies may either establish their own manufacturing capacity in India or develop domestic capability through contract manufacturing arrangements. Under both models, import entitlements are linked to clearly defined milestones such as investment, pilot production, commercial production and eventual BIS certification.
In other words, the framework is not designed simply to facilitate imports. It seeks to provide temporary compliance flexibility while encouraging companies to build long-term manufacturing and supply-chain capability in India.
Industry Welcomes a More Practical Approach
For companies operating global manufacturing and sourcing networks, the framework addresses a long-standing practical concern.
Frank Schloeder, Managing Director, Häfele South Asia, describes the Transition Facilitation Order as “a welcome and pragmatic step.”
“It recognises a practical challenge faced by many industries, namely the gap between the notification of QCO and the time required to complete certification, particularly for products manufactured in global supply chains,” he says.
According to Schloeder, the framework strikes an appropriate balance between maintaining product quality and allowing businesses sufficient time to align products, suppliers, testing facilities and certification processes without disrupting supply chains or customer
commitments.
He believes the framework creates “a structured pathway for companies that can demonstrate technical capability, compliance discipline and a credible commitment towards strengthening manufacturing and supply-chain capabilities in India.”
Looking beyond the current Order, Schloeder argues that quality regulation and industrial growth should reinforce each other rather than be viewed as competing objectives.
“India has already demonstrated that it can be both—a large market and an attractive manufacturing destination. The most successful QCO framework will therefore be one that maintains high quality standards while fostering innovation, competitiveness and collaboration between domestic and global industry stakeholders.”
A Targeted Rather Than Universal Framework
Kaul believes the framework has been designed for a specific category of companies.
The eligibility conditions—including demonstrated technical capability, established quality systems, compliance history and long-term commitments towards building manufacturing capability in India—are, in his view, best suited to companies with mature supply chains, established vendor-management systems and significant technology capabilities.
At the same time, he argues that many manufacturers continue to require faster processing of conventional BIS certifications under Scheme I, particularly where imported raw materials and components remain essential inputs.
Domestic Industry Seeks Broader Facilitation
The Association of Furniture Manufacturers & Traders (AFMT) has welcomed the Transition Facilitation Order, describing it as a positive step that reflects the Government’s willingness to address industry concerns while maintaining its commitment to quality standards.
However, the association believes several practical issues continue to affect furniture manufacturers. Among these are the limited availability of BIS-certified raw materials, delays in testing and certification, and the need for greater clarity regarding compliance requirements for certain products and components.
AFMT also points out that while the current framework provides relief in relation to finished products, many furniture manufacturers continue to depend on imported raw materials and components. The association has therefore called for greater BIS testing capacity, phased implementation for MSMEs, clearer guidance and continued consultation between Government and industry.
Reading Between the Lines
One notable aspect of the Transition Facilitation Order is the sectors it covers—and those it does not.
While the Order extends to furniture and hinges, it does not cover wood-based panels, plywood, MDF, particleboard or decorative laminates. These segments have already seen substantial domestic investment in manufacturing capacity and BIS compliance over the years.
By contrast, furniture, furniture fittings and several other covered sectors continue to rely on globally integrated supply chains for specialised products and components.
Whether this distinction is deliberate policy or simply reflects the sectors where transition challenges have been most acute, the framework indicates that future implementation of India’s quality regime may increasingly differentiate between industries based on supply-chain realities and manufacturing capability, rather than applying a uniform compliance approach.
The Road Ahead
The Transition Facilitation framework represents more than a procedural adjustment to India’s Quality Control regime. It signals an evolution from a one-size-fits-all compliance model towards a more differentiated, risk-based approach that attempts to reconcile quality assurance with industrial development.
For the furniture industry, the Order is likely to be welcomed as an important step towards reducing compliance bottlenecks, particularly for companies operating international sourcing networks. At the same time, domestic manufacturers continue to seek improvements in BIS certification capacity, greater availability of certified raw materials and a more practical implementation pathway for the broader industry.
Ultimately, the success of the Transition Facilitation Order will depend not only on the policy itself, but on how efficiently it is implemented. Timely approvals, transparent decision-making and continued engagement between Government and industry will determine whether the new mechanism succeeds in making India’s quality infrastructure both more robust and more business-friendly.
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