Government Plans 3-year Extension of Quality Certification Fee Concessions for Small Firms

The government is set to extend fee concessions for quality certification by 3 years beyond the current mid-2026 deadline, as per PTI reports. The proposal has been moved by the Bureau of Indian Standards (BIS) and is under consideration. 

If approved, the extension would continue the existing fee relief structure for micro, small and medium enterprises until around 2029.  

At present, micro units get an 80% reduction in certification fees, small enterprises receive a 50% concession, while medium-sized firms are eligible for a 20% reduction. 

Small Firms Form Majority of Licensees 

BIS has issued around 55,000 certification licences so far. Nearly half of these were obtained voluntarily, even where certification is not mandated by regulation. Micro, small and medium enterprises account for nearly 80% of all BIS license holders. 

India has published more than 23,000 standards, of which about 95% are aligned with international benchmarks. However, officials acknowledged that adoption remains uneven, particularly among smaller firms, due to cost pressures and limited access to testing infrastructure. 

Coverage Under Quality Norms 

Quality control orders currently cover more than 700 products that require mandatory certification. Another 900 products fall under voluntary certification norms. BIS officials said the scope of quality regulation has expanded steadily over the years across sectors. 

The certification system has been digitised, resulting in compliance rates of about 96-97% over the past two years. For Indian manufacturers, the certification process typically takes between 30 and 90 days, according to officials. 

Testing Infrastructure Gaps 

BIS operates with a staff strength of about 1,400, including 600-700 technical personnel. Standards development is supported by around 15,000 industry experts working across more than 400 technical committees. BIS has also recognised about 700 laboratories for product testing. 

Read More: PSBs Sanction Over ₹52,300 Crore MSME Loans Through Digital Credit Model!   

Conclusion 

The proposed extension of certification fee concessions would maintain existing cost relief for smaller firms, while parallel steps continue to address testing capacity and certification timelines. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.