**Executive Summary**
The Government of India, through various ministries and the Bureau of Indian Standards (BIS), is implementing Quality Control Orders (QCOs) with exemptions and relaxations for Micro, Small, and Medium Enterprises (MSMEs) to ensure no disruption of domestic production. BIS is providing financial incentives in the annual minimum marking fee to support MSMEs. Additionally, the Reserve Bank of India (RBI) has advised banks to link loans to MSMEs to external benchmarks to improve monetary policy transmission. The information provided in this document was presented in a written reply in Lok Sabha on 14 DEC 2023.
**Key Points / Main Content**
* **QCO Exemptions and Relaxations for MSMEs:**
* Additional time granted to MSEs: 6-month extension for micro enterprises and 3-month extension for small enterprises.
* Exemption for imports by domestic manufacturers for producing export-oriented products.
* Exemption for the import of up to 200 units for Research & Development purposes.
* Provision for clearance of legacy stock (manufactured or imported before implementation) within six months from the effective date.
* **Financial and Technical Relaxations by BIS:**
* Financial incentives in the annual minimum marking fee: 80% concession for Micro Enterprises, 50% for Small enterprises, and 20% for Medium Enterprises. An additional 10% concession is provided to enterprises in the north-east areas or women entrepreneur MSME units.
* Maintaining an in-house laboratory is optional; MSME units can use outside BIS recognized laboratories, NABL accredited labs, or share resources.
* ‘Levels of Control’ in the Scheme of Inspection and Testing (SIT) are recommendatory. Manufacturers can define their own control unit/batch/lot and their own Levels of Control, and inform BIS.
* BIS has made product certification process guidelines publicly available and is issuing product-wise manuals.
* **RBI Measures for MSME Lending:**
* Banks advised to link MSME loans to an external benchmark to improve monetary policy transmission.
* Reset clause for loans reduced to three months under the external benchmark system.
* Banks advised to provide a switchover option to existing borrowers as per mutually agreed terms for external benchmark-based interest regime.
* **Government Initiatives for MSME Loans:**
* Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) announced to help MSMEs access loans for growth, especially for purchasing essential equipment and machinery, with a credit guarantee cover to lenders for term loans up to Rs. 100 crore.
* Specific lending targets for the MSME sector are prescribed in Priority Sector guidelines.
* Scheduled Commercial Banks cannot request collateral security for loans up to ₹10 lakh extended to MSE units.
* Computation of working capital requirements of MSE units to be minimum 20% of the projected annual turnover for borrow limits up to ₹5 crore.
**Impact Analysis**
**MSMEs**
* **Impact:** Benefit from QCO exemptions/relaxations, financial incentives from BIS, easier access to loans, and flexibility in laboratory and control level requirements.
* **Action Required:** MSMEs should familiarize themselves with the QCO exemptions, BIS incentives, and loan scheme details, and inform BIS of their defined Levels of Control.
**Banks/Lenders (Scheduled Commercial Banks, All India Financial Institutions, NBFCs)**
* **Impact:** Need to link MSME loans to external benchmarks and offer switchover options. Also, benefit from the government credit guarantee scheme.
* **Action Required:** Implement the RBI guidelines on external benchmark linking and switchover options, and offer loans under the Mutual Credit Guarantee Scheme.
**Domestic Manufacturers**
* **Impact:** Imports for export-oriented production and R&D purposes now face new exemptions. Legacy stock can be cleared with provisions.
* **Action Required:** Manufacturers need to understand and follow the new import exemption rules and legacy stock clearance provisions.
**Bureau of Indian Standards (BIS)**
* **Impact:** BIS is responsible for implementing financial and technical relaxations and publishing guidelines.
* **Action Required:** BIS must continue to implement the relaxations effectively and ensure that information about the guidelines is readily available.
Key Entities Referenced
Quality Control Orders (QCOs): Government orders issued by line Ministries with exemptions/relaxations for MSMEs to ensure no disruption to domestic production
Micro, Small, and Medium Enterprises (MSMEs): Businesses targeted by policies and relaxations
Bureau of Indian Standards (BIS): Department implementing financial incentives and relaxations for MSMEs
Reserve Bank of India: Advising banks on linking loans to MSMEs to external benchmarks and improving credit flow
Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME): Government-backed initiative designed to help MSMEs access loans
Ministry of Micro,Small & Medium Enterprises
The Government implements Quality Control
Orders (QCOs) with exemptions and relaxations
for MSMEs to ensure no disruption of domestic
production
Financial incentives provided by BIS in annual minimum
marking fee to support MSMEs
Banks advised by Reserve Bank of India to link loans to
MSMEs to external benchmarks to improve monetary policy
transmission
प्रव तथ: 14 DEC 2025 12:20PM by PIB Delhi
The Government of India through Bureau of Indian Standards (BIS), Department of Consumer Affairs,
Ministry of Consumers Affairs, Food & Pubic Distribution implements, phase-wise, Quality Control
Orders (QCOs) issued by the line Ministries with exemptions/relaxations for MSMEs, to ensure that
Quality Control Orders (QCOs) do not disrupt domestic production. Some of the key relaxations and
exemptions are as below:
Additional time for Micro and Small Enterprises (MSEs): 6-month extension for micro enterprises and 3-
month extension for small enterprises.
Exemption for imports by domestic manufacturers for producing export-oriented products.
Exemption for import of up to 200 units for Research & Development purposes.
Provision for clearance of legacy stock (manufactured or imported before implementation) within six
months from the effective date.
The Bureau of Indian Standards (BIS) has informed that based on the feedback on certification processes,
BIS has implemented the following financial and technical relaxations to MSME sector:
To support MSMEs, financial incentives are provided by BIS in annual minimum marking fee with
concession of 80% (for Micro Enterprises), 50% (Small enterprises) and 20% (Medium Enterprises). An
additional concession of 10% is also provided to enterprises which are either located in north-east areas or
women entrepreneur MSME units.
The requirement of maintaining in-house laboratory has been made optional for MSME units. MSME
units are allowed to utilize the services of outside BIS recognized laboratories, NABL accredited labs or
even sharing of resources like cluster based labs or laboratories of other manufacturing units. The ‘Levels
of Control’ in the Scheme of Inspection and Testing (SIT) are made recommendatory in nature. The
manufacturer has the choice to define their own control unit/batch/lot and their own Levels of Control and
inform the BIS.BIS has also made the product certification process guidelines publicly available on the BIS website. BIS
also issuing product-wise manuals as guidance documents for conformity assessment as per various Indian
Standards.
As per the information provided by Reserve Bank of India, with a view to improve monetary policy
transmission, banks have been advised by Reserve Bank of India to link loans to MSMEs to an external
benchmark. The reset clause for loans has been reduced to three months under the external benchmark
system. Further, to make the benefit of external benchmark-based interest regime available to the existing
borrowers, banks have been advised to provide a switchover option as per mutually agreed terms. Further,
RBI also took various other measures for improving credit flow to the MSME sector: some of them are as
under:
The government has announced Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME), a
government-backed initiative designed to help Micro, Small, and Medium Enterprises (MSMEs) access
loans to grow their businesses. This scheme offers a credit guarantee, making it easier for MSMEs to
obtain loans, especially for purchasing essential equipment and machinery. The Scheme provides credit
guarantee cover to lenders (Scheduled Commercial Banks, All India Financial Institutions, NBFCs) for
their term loans up to Rs.100 crore to MSMEs for their projects involving purchase of
equipment/machinery.
Specific targets for lending to MSME sector have been prescribed in Priority Sector guidelines.
Schedule Commercial Banks have been mandated not to accept collateral security in the case of loans up
to ₹10 lakh extended to units in the MSE sector.
Computation of working capital requirements of MSE units to be minimum 20% of the projected annual
turnover for borrow limits up to ₹5 crore.
This information was given by the Minister of State for Micro, Small and Medium Enterprises (Sushri
Shobha Karandlaje) in a written reply in Lok Sabha.
*****
AKS
(रलीज़ आईडी: 2203666) आगंतुक पटल : 1961
इस वज्ञ को इन भाषाओ ंम पढ़: Urdu , Marathi , ही , Tamil