GTRI Recommends Cap on Testing Charges Amid MSME Cost Concerns

The Global Trade Research Initiative (GTRI) has called on the government to introduce a cap on testing charges for industrial products, flagging rising compliance costs under Quality Control Orders (QCOs) as a growing concern for MSMEs.

According to GTRI, the current testing and certification framework is imposing a disproportionate financial burden on smaller manufacturers and importers. While large firms are able to absorb or distribute these costs across higher volumes of imports, MSMEs are facing increasing cost pressures that are impacting their competitiveness.

Ajay Srivastava, Founder of GTRI, noted that the existing structure risks creating an uneven playing field. Smaller businesses, particularly those dependent on importing specialised components and machinery, are finding it difficult to sustain operations under escalating compliance costs.

The think tank has warned that persistently high certification expenses could undermine the broader objectives of the ‘Make in India’ initiative. Domestic manufacturers often rely on critical inputs that are not available locally, and additional testing costs are making such imports less viable.

GTRI has recommended a set of corrective measures, including capping testing charges, recognising reports from accredited foreign laboratories, and conducting detailed impact assessments before implementing new quality regulations.

The intervention highlights the need to balance quality enforcement with cost efficiency, particularly at a time when MSMEs are expected to play a central role in strengthening India’s manufacturing and export ecosystem.