India faces the risk of widespread shutdowns of small manufacturing firms and job losses, as import of steel fasteners, including nuts, bolts, screws, may come to a halt due to the implementation of quality control orders (QCOs) from next week, a Delhi-based think-tank concluded.

Imports of steel fasteners will stop beginning March 20 since no foreign manufacturers have been approved under the Bureau of Indian Standards (BIS) certification process, according to the Global Trade Research Initiative (GTRI). This will create uncertainty and supply chain bottlenecks.

“The cumbersome BIS approval process discourages foreign manufacturers from registering due to complex procedures and low trade volumes, leading to critical shortages,” the GRTI report stated. “Additionally, customs clearance delays caused by confusion over HS Code classifications will add to costs and inefficiencies, impacting businesses already struggling with supply chain disruptions.”

QCO risks widespread shutdowns of small manufacturing firms that may find it difficult to obtain certification, leading to job losses and industrial stagnation, the report noted.

India relies on specialized imported fasteners for critical applications in industries, such as automobiles, aerospace, electronics, and defense.