"Connecting communities, empowering nations: Unifying the Regional and Global Economy ."

The Machinery and Electrical Equipment Safety Regulation 2024 represents a pivotal shift in India’s industrial safety landscape, aimed at aligning with global safety standards. However, its implementation raises critical concerns, particularly for Micro, Small, and Medium Enterprises (MSMEs), which form the backbone of India’s manufacturing sector. With MSMEs accounting for 90% of the 150,000 manufacturers directly impacted, the new regulation could pose both challenges and opportunities for these enterprises.

The Scope of the Regulation

The regulation targets over 50,000 types of machinery, including essential industrial equipment like pumps, compressors, centrifuges, cranes, transformers, switchgear, metal-cutting tools, and looms. These products span 463 tariff lines and are central to sectors such as textiles, manufacturing, construction, and energy. Compliance now hinges on meeting stringent safety standards set by the Bureau of Indian Standards (BIS) for both domestic production and imports.

Financial Implications for MSMEs

Compliance with the new safety standards involves significant costs, which could range from ₹50,000 to ₹50 lakh per machine, depending on the complexity and category. For small-scale enterprises operating on razor-thin margins, these expenses threaten financial stability. The costs include:

Upgrading existing machinery to meet BIS standards.

Acquiring new machinery, as many older models may not be compliant.

Additional approvals and certifications for production and imports.


These financial burdens could push several MSMEs toward operational disruptions, reduced competitiveness, or even closure if adequate support mechanisms are not introduced.

Operational Challenges

Beyond financial strain, MSMEs face significant operational hurdles:

1. Limited Access to Technology: Many MSMEs rely on legacy systems and lack access to advanced technology required for compliance.


2. Workforce Skills Gap: The absence of a skilled workforce capable of handling upgraded machinery and implementing safety protocols exacerbates the problem.


3. Delayed Approvals: The mandate for prior BIS approval for machinery imports and domestic production introduces potential delays in acquiring essential equipment, impacting timelines and productivity.

Sector-Wide Impacts

The regulation’s ripple effects extend across industries. For instance:

Textile MSMEs reliant on looms and sewing machines may face delays in modernization efforts.

Manufacturing and construction MSMEs utilizing cranes, compressors, and cutting tools could see slowed project execution due to equipment upgrades.

Energy sector MSMEs using transformers and switchgear may struggle with compliance costs, affecting infrastructure projects.


The Need for Government Intervention

To ensure the regulation achieves its safety objectives without stifling the MSME sector, government intervention is critical. Potential measures include:

Financial Assistance: Subsidies or low-interest loans for machinery upgrades and certification processes.

Capacity Building: Training programs to upskill the MSME workforce in safety compliance and machinery operation.

Streamlined Approvals: Simplifying BIS approval processes to minimize delays in machinery availability.

Transition Periods: Introducing phased implementation to allow MSMEs sufficient time to adapt to new standards.

Opportunities Amid Challenges

While the regulation presents challenges, it also opens doors to opportunities:

Global Market Alignment: Compliance with international safety standards enhances the competitiveness of MSME products in global markets.

Technology Modernization: Upgrading to safer and more efficient machinery could improve productivity and operational efficiency in the long run.

Enhanced Safety Culture: Adhering to stringent standards fosters a culture of safety, reducing workplace accidents and liabilities.

A Call for Collaborative Solutions

The success of the Machinery and Electrical Equipment Safety Regulation 2024 depends on collaborative efforts between stakeholders. Industry associations, government bodies, and MSMEs must work together to ensure a balanced approach that promotes safety without compromising the sustainability of small enterprises. Clear communication, financial support, and skill development initiatives will be essential to navigate this regulatory landscape.


The Machinery and Electrical Equipment Safety Regulation 2024 is a double-edged sword for MSMEs in India. While it sets the stage for enhanced industrial safety and global competitiveness, it also poses significant financial and operational challenges. By addressing these challenges through targeted interventions, the government and industry stakeholders can transform this regulation from a potential threat into an opportunity for growth and modernization in India’s MSME sector.