New Safety Regulations for Machinery, Equipment to Impact MSMEs: GTRI

The newly issued safety regulations for machinery and electrical equipment by the Indian government are expected to significantly impact domestic production by the Micro, Small, and Medium Enterprises (MSMEs) and may delay the import of essential equipment, according to a report by the Global Trade Research Initiative (GTRI). On Monday, the think tank urged the government to extend the compliance timeline, implement the rules in a phased manner, and provide additional support to help MSMEs manage these new regulations.

While large corporations have the resources to meet the new safety standards, MSMEs face considerable financial, technical, and infrastructural constraints, making compliance a burden for small businesses. GTRI highlighted the specific challenges MSMEs face in adhering to the Ministry of Heavy Industry’s (MHI) Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Order, 2024, which is set to take effect on August 28, 2025.

These new regulations impose stringent safety standards on machinery and electrical equipment manufactured or imported into India, aligning the country’s safety practices with global norms. The rules are anticipated to affect an estimated 1,50,000 manufacturers, with MSMEs comprising 90% of those impacted. The regulations cover over 50,000 types of machinery, including essential industrial equipment like pumps, compressors, centrifuges, cranes, looms, metal-cutting tools, transformers, and switchgear, all of which fall under 463 tariff lines.

In FY24, India’s imports in these tariff lines amounted to $25 billion, with China accounting for 39.1% of that value. India also exported $17.7 billion worth of machinery during the same period. These regulations will apply to both machinery and their parts or subassemblies, requiring manufacturers to comply with the Bureau of Indian Standards (BIS) safety and conformity requirements.

Although the ministry order exempts export-oriented machinery, GTRI Founder Ajay Srivastava pointed out that this exemption may not be practically beneficial, as most companies manufacture goods for both domestic and export markets. As a result, businesses will still need to obtain full BIS certification for their entire product range.

Srivastava stressed that a coordinated effort between the government, industry associations, and businesses is essential to ensure the smooth implementation of the new safety regulations. He also emphasized the need for certified technical professionals to assist industries in meeting these standards.

Anil Jauhri, former CEO of the National Accreditation Board for Certification Bodies (NABCB), echoed these concerns, stating that a mechanism for certifying technical consultants is vital to support industries in adopting the new regulations. He added that while the Indian National Strategy for Standardisation (INSS) promotes counselling and training, there has been little action to certify technical consultants and trainers, leaving industries struggling to implement the changes effectively.

Disclaimer: The information provided in this article is based on news updates and reports gathered from various internet sources. While every effort has been made to ensure the accuracy and reliability of the information, we encourage readers to verify the details independently before making any decisions.