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India's new machinery safety rules to affect over 150,000 manufacturers
Industry News- Sep 19,24
The MSME sector, which contributes about 30% of India's GDP and over 45% of exports, is voicing concerns and seeking an extension of the deadline.
India's heavy industry ministry has introduced the Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Order, 2024, set to take effect in August 2025. The regulation aims to align Indian safety practices with global standards but is expected to significantly impact more than 150,000 manufacturers, particularly small and medium-sized enterprises (SMEs).
Experts warn that the new safety rules, which cover over 50,000 types of machinery and electrical equipment, will impose strict safety standards on products manufactured or imported into India. The compliance costs for adhering to these new safety standards are estimated to range from Rs 50,000 to Rs 5 million, depending on the type of machinery. Ajay Srivastava, Founder, Global Trade Research Initiative (GTRI), noted that the regulations will particularly challenge micro, small, and medium enterprises (MSMEs), as many currently adhere to ISO 9001—a management standard that does not address specific safety concerns in manufacturing. The transition to the three tiers of machine safety standards within the one-year deadline poses a significant financial and technical hurdle for these smaller firms.
While machinery meant for export is exempted under the new regulations, this offers limited relief. Most Indian companies produce machinery for both domestic and export markets, requiring full compliance with the Bureau of Indian Standards (BIS) certification across their entire product range. This increases the regulatory burden on manufacturers.
The MSME sector, which contributes about 30% of India's GDP and over 45% of exports, is voicing concerns and seeking an extension of the deadline. Rajnish Goenka, Founder-Chairman, MSME Development Forum, emphasised the challenges posed by the new regulations, stating that the sector is already "in a neglected state" and these rules could push it further backward.
Despite the challenges, some experts argue that the order could have long-term benefits. Mukesh Mohan Gupta, President, Chamber of Indian Micro Small & Medium Enterprises, suggested that compliance with enhanced safety standards will ultimately improve operational efficiency and open up new international market opportunities for Indian businesses.
(Mint)
Mukesh Mohan Gupta
Indian Micro Small & Medium Enterprises
Machinery
SME
MSME
Ajay Srivastava
Rajnish Goenka
GTRI
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