India’s MSMEs may face cost increases and supply disruptions due to new safety norms for machinery and electrical equipment.
The Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Order, 2024, issued by the Ministry of Heavy Industry on August 28, introduces stringent safety standards.
The new norms will take effect one year from now.
The order applies to machinery and electrical equipment made or imported into India, including pumps, cranes, and compressors.
Export-oriented items are exempt from the order, but this provides little relief since many MSMEs supply both domestic and export markets.
Approximately 90% of domestic producers affected by the norms are MSMEs.
Most MSMEs currently adhere to ISO 9001 norms, which do not explicitly address safety concerns.
The new norms are highly technical and lack implementation guidelines from the Bureau of Indian Standards (BIS), making compliance difficult for MSMEs.
Smaller firms may lack the advanced machinery or technology needed to meet the new standards.
The report suggests delaying implementation and providing support to help MSMEs prepare for the new standards.
Without assistance, many MSMEs may struggle to comply and could be forced to close.
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