Image Source: KNN India
Micro, Small, and Medium Enterprises (MSMEs) in India are urging the government to introduce a phased implementation of Quality Control Orders (QCOs) to enhance compliance with Bureau of Indian Standards (BIS) standards. Industry stakeholders contend that abrupt and blanket imposition of these quality requirements jeopardizes the survival of thousands of small enterprises, citing excessive compliance costs, ambiguity, and inadequate support infrastructure.
At recent industry roundtables and webinars, MSME leaders raised several concerns:
Complex and Expensive Compliance: MSME associations such as the All India Stainless Steel Industries Association and the Federation of Associations of Maharashtra have sent letters to government authorities cautioning that compulsory BIS certification is excessively costly and complicated for small producers. The cost of initial certification, new equipment, testing, and documentation can be as high as almost ₹1 lakh per unit, a cost beyond the reach of most small enterprises with thin profit margins.
Uncertain Transition Timelines: Several MSMEs are apprehensive about the fate of stock produced or imported prior to notification of the QCOs. Absence of transitional provisions can make existing inventory go unsold overnight, causing considerable financial losses.
Lack of Support Tools: Small firms complain about the inability to find applicable standards and check certifications on the BIS portal, which compels them to employ expensive consultants. This absence of available tools and guidance is regarded as a significant compliance barrier.
Risk of Business Closures and Job Losses: Industry associations warn that unless the government revises its approach, widespread business closures and job losses are imminent, particularly in sectors like stainless steel utensils where MSMEs dominate both domestic and export markets.
Call for Phased Rollout and Single-Window Advisory: Stakeholders have called for the government to introduce a single-window advisory system and roll out QCOs in phases. This would give MSMEs enough time to get used to changes, undergo training, and streamline processes without an abrupt shock.
Government and Industry Efforts: To address this, India SME Forum, in collaboration with Amazon India, has initiated a seller education campaign to enable MSMEs to learn and adhere to QCOs and BIS marking. The initiative is designed to fill knowledge gaps and provide businesses with hands-on tools to ensure regulatory compliance.
Regulatory Perspective: The government has notified 187 QCOs covering 769 products, making BIS certification compulsory across a broad range of sectors. These standards are intended to ensure public safety, environmental protection, and fair trade practices. However, MSME leaders argue that a one-size-fits-all approach is unfair to small businesses and are advocating for exemptions or self-certification options for low-risk products.
Industry Voices
"We don't object to standards. We object to a one-size-fits-all approach that murders small businesses," stated Sailesh Shah, President, AISSIA.
"Most MSMEs are ready to adopt BIS norms, but they are lost about where to start. Getting certified is very complicated and costly, leaving companies either to take the expensive consultant's route or drop the process," stated Shreya Suri, Partner, IndusLaw.
The Road Ahead
While the government is nudging higher quality standards to enhance exports and consumer protection, MSMEs are looking for a more inclusive and gradual transition towards regulatory compliance. Industry associations suggest that the government undertake multi-stakeholder consultations, standardize turnover definitions, and extend technical and financial support so that small enterprises are not left behind in India's quest for quality.
Sources: The Print, BusinessWorld, PIB
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