Industry experts warned that the country's small manufacturers might suffer greatly from new safety regulations for machinery and electrical equipment, which are scheduled to take effect in August 2025. They called for extra time for preparedness.

The Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Order, 2024 was introduced by the heavy industries ministry in August, with the stated goal of bringing Indian safety measures into compliance with international norms.

However, industry insiders told that the move is expected to increase compliance costs and affect more than 50,000 different types of electrical and mechanical equipment made by more than 150,000 businesses.

Strict safety requirements are imposed by the legislation on electrical and mechanical equipment that is produced or imported into India.

Challenges for MSMEs

Micro, small, and medium-sized businesses (MSMEs) are predicted to be the most severely affected by the law since the majority of MSMEs follow ISO 9001, a management-focused standard that ignores safety issues in manufacturing.

According to experts, smaller businesses may find it difficult to comply with the regulation's three tiers of machine safety regulations in time for the one-year deadline.

According to data from the commerce ministry, during the April–July 2024 period, India's engineering product exports totaled $35.76 billion, representing a 4.08% annual rise. Meanwhile, their imports came to $46.57 billion, increasing by 8.17% annually during the same period.

The government has received concerns from the MSME sector on the new laws, and they are also requesting an extension of the deadline.

The Small Industries Development Bank of India (SIDBI) estimates that MSMEs account for over 45% of exports, which is second only to agriculture in volume terms, and over 30% of the nation's GDP.

Other analysts stated that despite the difficulties in the near term, the directive offers long-term benefits for firms.

According to Mukesh Mohan Gupta, president of the Chamber of Indian Micro, Small, and Medium-Sized Enterprises, "businesses will follow enhanced safety standards, paving the way for growth and international opportunities, as well as improving operational efficiency and qualifying their products for global markets."

Other analysts stated that despite the difficulties in the near term, the directive offers long-term benefits for firms.