{"id":29262,"date":"2024-09-10T18:52:10","date_gmt":"2024-09-10T13:22:10","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=29262"},"modified":"2025-07-11T18:08:01","modified_gmt":"2025-07-11T12:38:01","slug":"new-machine-safety-norms-to-affect-msmes","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/10-09-2024\/new-machine-safety-norms-to-affect-msmes","title":{"rendered":"New Machine Safety Norms to Affect MSMEs"},"content":{"rendered":"\n

Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n

Context<\/strong><\/h2>\n\n\n\n
    \n
  • The Global Trade Research Initiative (GTRI) report stated that the new safety regulations for machinery and electrical equipment will affect domestic production by the MSME segment.<\/li>\n<\/ul>\n\n\n\n

    Background<\/strong><\/h2>\n\n\n\n
      \n
    • Recently the Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Order, 2024,<\/strong> was introduced by the Ministry of Heavy Industry (MHI), which is set to take effect on August 28, 2025.<\/li>\n\n\n\n
    • These regulations bring in stringent safety standards <\/strong>for machinery and electrical equipment manufactured or imported into India,<\/strong> aimed at aligning Indian safety practices with global norms.<\/li>\n\n\n\n
    • The new rules are expected to have far-reaching consequences for the Micro, Small, and Medium Enterprises (MSMEs)<\/strong>, which make up 90 per cent of the estimated 1,50,000 manufacturers that will be affected.<\/li>\n<\/ul>\n\n\n\n

      Key points of new safety norms<\/strong><\/h2>\n\n\n\n
        \n
      • The norms introduce three levels of stringent safety standards<\/strong> for machinery and electrical equipment manufactured or imported into India.<\/strong><\/li>\n\n\n\n
      • These regulations apply to both machinery and their parts or subassemblies<\/strong>.<\/li>\n\n\n\n
      • It will require manufacturers to comply with the safety and conformity standards set forth by the Bureau of Indian Standards (BIS).<\/strong><\/li>\n\n\n\n
      • The regulations cover more than an estimated 50,000 types of machinery, <\/strong>including key industrial equipment like pumps, compressors, centrifuges, cranes, transformers, and switchgear, which fall under 463 tariff lines or product categories.\n
          \n
        • In FY 2024, India’s imports in these tariff lines amounted to $25 billion<\/strong>, with China accounting for 39.1 percent<\/strong> of that value. <\/li>\n\n\n\n
        • India also exported $17.7 billion <\/strong>worth of machinery in the same period.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

          What are the concerns?<\/strong><\/h2>\n\n\n\n
            \n
          • Though the export-oriented items have been exempted<\/strong> from the order that mandates prior approvals from the Bureau of Indian Standards (BIS).\n
              \n
            • However it offers only little relief to the 1.5 lakh<\/strong> such equipment manufacturers as they supply to both domestic and export markets. <\/li>\n<\/ul>\n<\/li>\n\n\n\n
            • Currently, most MSMEs adhere to ISO 9001 norms<\/strong> that don\u2019t address safety concerns explicitly.\n
                \n
              • On the other hand the new norms are highly technical and the lack of implementation guidelines from BIS <\/strong>will make compliance even more difficult for producers.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
              • Financial and technical barriers<\/strong> will pose significant hurdles for MSMEs, with compliance costs ranging from \u20b950,000 to \u20b950 lakh<\/strong> depending on the type of machinery and the standards required. <\/li>\n<\/ul>\n\n\n\n

                Concluding remarks<\/strong><\/h2>\n\n\n\n
                  \n
                • The government should delay implementation<\/strong> and help the industry prepare. Without support, most MSMEs may struggle to comply and be forced to close.<\/li>\n\n\n\n
                • A phased approach, with extended timelines<\/strong> for compliance and support from industry bodies will be essential to ensure the benefits of these new safety standards are fully realized without unduly burdening smaller businesses.<\/li>\n<\/ul>\n\n\n\n
                  What are MSMEs?<\/strong>
                  – MSMEs or Micro, Small, and Medium Enterprises are businesses that are defined by their investment and turnover levels. <\/strong>
                  – They are considered an important sector of the economy as they create jobs, generate income, and promote entrepreneurship.
                  Contribution of MSMEs<\/strong>
                  – Contribution in Economy: <\/strong>MSMEs are often called the backbone of the Indian economy; they account for more than 11 crore jobs and contribute around 27% of India’s GDP. <\/strong>
                  – Employment Generation:<\/strong> The sector consists of around 6.4 crore MSMEs , with 1.5 crore of them registered on the Udyam portal and employs around 23% of the Indian labor force<\/strong>, making it the second-largest employer in India after agriculture. <\/strong>
                  – Output and Exports: <\/strong>They account for 38.4% of the total manufacturing<\/strong> output and contribute 45.03% of the country’s total exports.<\/strong> <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

                  Source: TH<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

                  The Global Trade Research Initiative (GTRI) report stated that the new safety regulations for machinery and electrical equipment will affect domestic production by the MSME segment.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-29262","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=29262"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29262\/revisions"}],"predecessor-version":[{"id":29263,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29262\/revisions\/29263"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=29262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=29262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=29262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}