India Withdraws Textile Machinery Safety QCO: Implications for Manufacturers and Importers

India’s textile industry has welcomed the central government’s January 2026 decision to withdraw the Quality Control Order (QCO) on machinery and electrical equipment safety, a move that removes mandatory certification requirements for a wide range of imported textile machinery.

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The rollback, notified by the Union Ministry of Heavy Industries through a gazette notification dated January 16, 2026, effectively cancels the Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Order, 2024. The government cited “public interest” considerations under the Bureau of Indian Standards (BIS) Act, 2016, following sustained industry concerns over compliance costs, supply disruptions, and the limited domestic availability of advanced textile machinery.

For textile manufacturers, exporters, and foreign investors, the decision preserves continued access to high-performance imported equipment critical for capacity expansion, technology upgrades, and global competitiveness.

Key implications of the January 2026 QCO rollback

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The withdrawal of the Omnibus Technical Regulation has immediate and practical consequences for India’s textile sector:

• No mandatory BIS certification is required for covered textile machinery and electrical equipment under the 2024 framework.
• Import flows remain unrestricted, ensuring continued access to specialized weaving, processing, and embroidery machinery.
• Compliance costs and lead-time risks linked to safety certification and documentation are eliminated.
• Investment planning certainty improves, especially for large-scale modernization projects reliant on imported equipment.

The QCO was originally scheduled to come into force on October 1, 2026, after multiple deferrals since its notification in August 2024. Its formal rescission removes the regulatory overhang that concerned manufacturers and investors alike.

Industry response: Why the textile sector pushed for withdrawal

Industry bodies, particularly in Gujarat’s major textile hubs such as Surat, had consistently argued that the QCO would impose disproportionate compliance burdens on a sector heavily dependent on imported machinery.

The South Gujarat Chamber of Commerce and Industry (SGCCI) warned that the regulation could constrain growth in one of India’s largest textile clusters, where advanced machinery is essential for productivity, quality, and export competitiveness.

India’s textile market is currently valued at approximately US$165 billion and is projected to reach US$350 billion by 2030. Achieving this growth is expected to require investments of around US$15 billion in nearly 450,000 high-speed weaving machines, many of which are not manufactured domestically.

Industry representatives also highlighted the embroidery segment’s dependence on imported machinery, noting that rapid technological upgrades require equipment replacement every two to three years. With limited local manufacturing options, continued access to imports remains critical for business viability.

Senior textile leaders have stated that nearly 95 percent of machinery used in the sector is imported and warned that rigid safety certification norms could have disrupted production, delayed modernization, and potentially led to job losses across the textile value chain.

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Background: What the August 2024 QCO required

Regulatory intent

The Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Order, 2024 was introduced to establish a mandatory safety and certification framework for a broad range of machinery and electrical equipment across sectors, following consultation with the Bureau of Indian Standards (BIS).

Scope and applicability

The QCO covered machines, electrical equipment, and their assemblies, sub-assemblies, and components specified in the notification. Exemptions applied to:

• Products already covered under other BIS QCOs
• Goods manufactured in India exclusively for export
• Construction equipment regulated under the Central Motor Vehicles Rules, 1989

Textile machinery covered

Compliance and safety standards

Manufacturers were required to comply with:

• Type A standards (general safety principles and risk assessment)
• Type B standards (specific safety aspects)
• Type C standards (product-specific safety requirements, overriding A and B)

Additional obligations included:

• BIS Scheme X labeling and marking
• Maintenance of a technical file
• Registration with BIS prior to certification

Certification, enforcement, and penalties

Certification options included:

• BIS license with standard mark
• Certificate of conformity for non-continuous manufacturing

BIS was designated as the certifying and enforcement authority, with market surveillance powers. Non-compliance attracted penalties under the BIS Act, 2016, and updates to Indian Standards would have applied automatically.

Why the regulation was ultimately withdrawn

Despite its safety-focused objectives, the QCO faced sustained resistance from industry stakeholders due to:

• Limited domestic manufacturing capacity for advanced textile machinery
• High compliance costs for foreign suppliers
• Risk of import delays and supply disruptions
• Rapid technology cycles requiring frequent machinery upgrades

Although notified in 2024, the regulation’s implementation was repeatedly deferred before being formally rescinded in January 2026.

What this means for businesses going forward

By withdrawing the QCO ahead of its scheduled implementation, the government has removed a major regulatory uncertainty for India’s textile sector.

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For manufacturers, the decision safeguards access to advanced machinery essential for modernization, productivity gains, and export competitiveness. For foreign investors and suppliers, it preserves a more predictable market environment for capital equipment sales into India.

From a business advisory perspective, the episode underscores the importance of:

• Regulatory monitoring in sectors dependent on imported capital goods
• Early stakeholder engagement in policy consultations
• Scenario planning for evolving compliance frameworks

While the current rollback eliminates immediate certification obligations, companies should remain alert to the possibility of a revised regulatory framework in the future – potentially introduced with phased timelines and deeper industry consultation.

ALSO READ: Guide to India’s Foreign Manufacturer Certification Scheme

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