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New safety regulations for machinery to impact MSMEs; GTRI
Industry News- Sep 10,24
The regulations will impact around 90% of the estimated 150,000 manufacturers, affecting over 50,000 types of machinery, including critical industrial equipment such as pumps, compressors, cranes, and transformers.
The Global Trade Research Initiative (GTRI) has highlighted concerns that new safety regulations for machinery and electrical equipment, introduced by the Ministry of Heavy Industry (MHI), will pose significant challenges for Micro, Small, and Medium Enterprises (MSMEs). While large corporations may have the resources to meet the new standards, MSMEs are expected to face unique difficulties in compliance.
The Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Order, 2024, which will come into effect on August 28, 2025, establishes stringent safety standards for both domestically manufactured and imported equipment. The GTRI suggests that the compliance timeline should be extended, implementation should be phased, and additional government support should be provided to aid MSMEs in adjusting to these regulations.
The GTRI report notes that MSMEs are burdened by financial, technical, and infrastructural constraints, which may make it challenging for them to meet the new requirements. The regulations will impact around 90% of the estimated 150,000 manufacturers, affecting over 50,000 types of machinery, including critical industrial equipment such as pumps, compressors, cranes, and transformers. In FY 2024, India's imports of such machinery amounted to $25 billion, with a significant portion coming from China, while exports totalled $17.7 billion.
Although the regulations do not apply to export-oriented machinery, most firms produce for both domestic and international markets, necessitating full compliance with Bureau of Indian Standards (BIS) certification for their entire product range.
Ajay Srivastava, Founder, GTRI emphasised the need for a coordinated approach involving government, industry associations, and businesses to ensure effective implementation of the new standards. Anil Jauhri, former CEO of the National Accreditation Board for Certification Bodies (NABCB), stressed the importance of certifying technical professionals to support industries in meeting the new requirements.
(business standard)
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