Summary
The Union Ministry of Heavy Industries has rescinded its order issued on August 24, 2024, relating to quality standards for machinery and electrical equipment safety. This removes quality control standards for imported textile machinery. Weaving and processing machinery are imported by many textile units, and the textile industry has been demanding withdrawal of the quality standards order on machinery. Though the order was introduced in 2024, the Centre postponed implementing it. Now, the government has removed the quality control order on all machinery.
Full Analysis
The Union Ministry of Heavy Industries has rescinded its order issued on August 24, 2024, relating to quality standards for machinery and electrical equipment safety. This removes quality control standards for imported textile machinery. Weaving and processing machinery are imported by many textile units, and the textile industry has been demanding withdrawal of the quality standards order on machinery. Though the order was introduced in 2024, the Centre postponed implementing it. Now, the government has removed the quality control order on all machinery.
Background Context
The textile industry's machinery requirements have historically been met through a mix of domestic production and imports. Early industrial policies in India focused on promoting indigenous manufacturing, including textile machinery. However, the sector faced challenges in terms of technological advancements and global competitiveness. Over time, the industry has become increasingly reliant on imported machinery, particularly for specialized weaving and processing operations. The introduction of quality control orders (QCOs) aimed to ensure that imported machinery met certain standards, mirroring similar measures in other sectors to protect domestic industries and consumers. The debate surrounding these QCOs reflects the tension between promoting domestic manufacturing and ensuring access to advanced technology for the textile sector.
Practice MCQs
Question 1
Which of the following is the MOST likely reason for the Union Government to rescind the Quality Control Order (QCO) on textile machinery imports?
- To protect the interests of domestic textile machinery manufacturers
- To reduce the cost of imported textile machinery for domestic textile units
- To promote the use of older, less efficient textile machinery
- To comply with international trade agreements that prohibit QCOs
Explanation: The most likely reason is to reduce costs and facilitate access to advanced technology for the textile industry, enhancing its competitiveness. While protecting domestic manufacturers is a consideration, the news suggests the industry's demands were a key factor.
Question 2
Consider the following statements regarding Quality Control Orders (QCOs) in India:
1. QCOs are issued by various ministries to ensure the quality of imported and domestically manufactured goods.
2. The Bureau of Indian Standards (BIS) is the primary agency responsible for formulating and implementing QCOs.
3. QCOs are mandatory and non-compliance can lead to penalties, including import restrictions.
Which of the statements given above is/are correct?
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
Explanation: All three statements are correct. QCOs are issued by ministries, BIS is the implementing agency, and non-compliance leads to penalties.
Question 3
Assertion (A): The Union Government has rescinded the Quality Control Order on textile machinery imports.
Reason (R): The textile industry argued that the QCO hindered access to the latest technologies and increased costs, affecting their competitiveness.
In the context of the above statements, which of the following is correct?
- Both A and R are true and R is the correct explanation of A
- Both A and R are true but R is NOT the correct explanation of A
- A is true but R is false
- A is false but R is true
Explanation: Both the assertion and the reason are true, and the reason correctly explains why the government rescinded the QCO.
Previous Year Questions
PYQ 1 - UPSC Prelims 2024 2024
Which of the following statements best describes the likely impact of the Union Government's decision to scrap the Quality Control Order (QCO) on textile machinery imports?
- (a) It will likely lead to an increase in the cost of textile production due to the influx of substandard machinery.
- (b) It will likely reduce the cost of textile production by allowing access to cheaper imported machinery, potentially impacting domestic manufacturers.
- (c) It will have no significant impact on the textile industry as quality control is already adequately maintained by individual textile units.
- (d) It will primarily benefit domestic textile machinery manufacturers by reducing competition from imports.
Explanation: Removing the QCO allows for cheaper imports, potentially lowering production costs for textile units but also impacting domestic machinery manufacturers who may not be able to compete on price.
PYQ 2 - UPSC Mains 2024 2024
Critically analyze the Union Government's decision to rescind the Quality Control Order (QCO) on textile machinery imports. Discuss the potential benefits and drawbacks of this decision for the Indian textile industry, considering factors such as cost competitiveness, technological advancement, and the interests of domestic manufacturers.
PYQ 3 - SSC CGL 2024 2024
The Union Ministry that recently rescinded the Quality Control Order on textile machinery imports is the:
- (a) Ministry of Textiles
- (b) Ministry of Commerce and Industry
- (c) Ministry of Heavy Industries
- (d) Ministry of Finance
Explanation: The Union Ministry of Heavy Industries rescinded the order.
PYQ 4 - SSC CHSL 2024 2024
The primary reason cited by the textile industry for demanding the withdrawal of the Quality Control Order on machinery was likely related to:
- (a) Concerns about environmental regulations.
- (b) High compliance costs and delays in imports.
- (c) Labor shortages in the textile sector.
- (d) A decline in demand for textile products.
Explanation: The industry likely wanted to reduce compliance costs and import delays.
PYQ 5 - IBPS PO 2024 2024
What is the potential impact of removing the Quality Control Order (QCO) on textile machinery imports on the lending portfolio of banks?
- (a) Increased risk of loan defaults due to potential import of substandard machinery.
- (b) Decreased demand for loans as textile units may opt for cheaper, unfinanced imports.
- (c) Increased demand for loans to modernize textile units with potentially cheaper imported machinery.
- (d) All of the above.
Explanation: All the options are potential impacts on the lending portfolio of banks.
PYQ 6 - SBI PO 2024 2024
Which of the following factors should banks consider when assessing loan applications from textile units after the removal of the Quality Control Order (QCO) on machinery imports?
- (a) The unit's plan for quality assurance and maintenance of imported machinery.
- (b) The unit's ability to compete with other textile units using potentially cheaper machinery.
- (c) The overall financial health and creditworthiness of the textile unit.
- (d) All of the above.
Explanation: Banks need to consider all these factors to mitigate risks.
PYQ 7 - CDS 2024 2024
The removal of the Quality Control Order (QCO) on textile machinery imports is MOST likely to directly affect which sector of the Indian economy?
- (a) Agriculture
- (b) Information Technology
- (c) Manufacturing
- (d) Services
Explanation: Textile machinery is directly related to the manufacturing sector.
PYQ 8 - CDS 2024 2024
Which of the following is a potential security concern arising from the removal of Quality Control Orders (QCOs) on imported machinery in general?
- (a) Increased risk of cyberattacks due to outdated software.
- (b) Potential for espionage through compromised hardware.
- (c) Higher incidence of industrial accidents due to substandard equipment.
- (d) All of the above.
Explanation: All options are potential security concerns.