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The Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, has notified the Transition Facilitation (Quality Control) Order, 2026 vide S.O. 3417(E) dated 25 June 2026.

The Transition Facilitation Order creates an alternative sourcing mechanism for eligible Indian manufacturers.

The Order introduces a risk-based compliance framework that allows eligible Indian manufacturers to source products from BIS Scheme-II licensed manufacturers, while continuing to ensure compliance with the applicable Indian Standards under the notified Quality Control Orders (QCOs).

This initiative aims to strengthen India’s manufacturing ecosystem by improving supply chain flexibility without compromising product quality or consumer safety.

BIS Scheme-II Licence – Eligibility

A BIS Scheme-II licence under this Order is available only to manufacturers that:

• Manufacture products covered under the notified QCOs and comply with the applicable Indian Standards:

• • Toys
  • Personal Protective Equipment- Footwear
  • Air Conditioner and its related Parts
  • Hermetic Compressor and Temperature Sensing Controls
  • Footwear made from All Rubber and All Polymeric Material and its components
  • Footwear made from Leather and other Materials
  • Electrical Appliance for Domestic Water Heating
  • Electrical Appliance for Domestic Clothes Washing
  • Hinges
  • Furniture
  • Safety of Household, Commercial and Similar Electrical Appliances

• Supply products only to companies that have obtained permission from DPIIT under this Order.
• Remain subject to BIS market surveillance, conducted in consultation with DPIIT, to verify continued compliance with the applicable Indian Standards.

*A Scheme-II licence does not authorize unrestricted sale in the Indian market. It is limited to supplies made to approved companies under this framework.

DPIIT Permission – Key Highlights & Documentation

Only companies incorporated under the Companies Act, 2013 are eligible to apply for permission

Applications will be evaluated by an Implementation Committee based on a comprehensive risk assessment covering:

• Technical capability
• Manufacturing expertise
• Supply chain quality assurance
• Compliance history and regulatory integrity
• Commitment to establishing manufacturing, design, R&D, or supply chain capabilities in India
• Three-year compliance record under applicable QCOs (where applicable)

Applicants may also be required to submit:

• Corporate documents
• Manufacturing and quality certifications
• Compliance declarations
• Undertakings
• Independent assessments
• Supporting technical documentation

Application & Validity of the Order

Application Window

Applications may be submitted within 24 months from the commencement of the Order.

Validity of the Order

The Transition Facilitation Order will remain in force for five years, unless extended by the Central Government.

Permissions granted before the expiry of the Order will continue to remain valid for the period specified in the approval unless suspended, modified, or withdrawn.

What Does It Mean for Indian Manufacturers?

For eligible Indian manufacturers, this Order provides:

✔ Greater sourcing flexibility
✔ Reduced supply chain disruptions
✔ Access to products manufactured under BIS Scheme-II
✔ Improved business continuity
✔ Continued compliance with Indian Standards
✔ Support for manufacturing expansion and localization

Final Thoughts

This Order is not a relaxation of quality standards – it is a controlled transition mechanism designed to provide sourcing flexibility while maintaining regulatory oversight.

By combining risk-based approvals, BIS Scheme-II licensing, and strict quality surveillance, the Government has introduced a balanced approach that supports manufacturing growth, strengthens supply chains, and promotes ease of doing business without compromising product quality.

With detailed implementation guidelines from DPIIT awaited, manufacturers should begin assessing their eligibility, supply chains, and documentation requirements to take advantage of this new compliance pathway.

Need support with India BIS related matters? Contact us at indiabis@reachlaw.fi