Footwear Industry Urges Government Intervention Over Concerns on BIS Standards to Save MSMEs

Date: August 9, 2023

In a recent development, the footwear industry has voiced its apprehensions over the proposed Bureau of Indian Standards (BIS) regulations, urging the government to step in to safeguard the interests of Micro, Small, and Medium Enterprises (MSMEs). While the industry acknowledges the importance of maintaining product quality, it has raised concerns about the scientific basis and practicality of the current BIS standards and implementation guidelines.

I. Introduction

The footwear sector’s communication with the Central government highlights its reservations regarding the upcoming BIS standards. While the industry is supportive of quality control measures, it questions the scientific rationale behind the existing standards. The Department for Promotion of Industry and Internal Trade (DPIIT) has introduced Quality Control Orders mandating BIS standards for all forms of footwear.

II. BIS Standards and Industry Concerns

The DPIIT’s directive includes a temporary exemption for specific footwear categories—Hawai Chappals, Sandals, Slippers, and Sports Shoes—until December 31, 2023. However, the footwear industry contends that the present standards lack scientific grounding and practicality. Notably, the same standard applies to diverse products, from affordable injection-molded PVS shoes to high-end sports shoes produced by multinational giants.

III. Impact on Unorganized Sector and MSMEs

The unorganized sector constitutes a substantial portion of India’s footwear industry, employing approximately 44.2 lakh people. This sector heavily relies on MSMEs for its functioning. Industry insiders warn that if the BIS standards remain devoid of scientific accuracy, MSMEs—predominantly comprising the unorganized sector—could face insurmountable challenges, leading to their closure. This could subsequently result in the domination of a few organized players and multinational corporations.

IV. Key Concerns Raised by MSME Footwear Sector Action Council

1. The industry asserts its endorsement of quality standards but demands the rectification of existing standards and implementation procedures.
2. Micro and small enterprises had previously been granted exemptions from BIS regulations. The sector urges the government to continue this exemption for these entities.
3. A timeline of 2-3 years is proposed, allowing industries to comply with robust standards that encompass product categories, pricing, manufacturing processes, and raw materials. This time frame accounts for the establishment of necessary testing infrastructure and the availability of compliant raw materials.
4. To prevent wastage and losses, the retrospective enforcement of BIS standards is discouraged. Implementation should only apply to products manufactured post the final implementation date.

V. Conclusion

The footwear industry’s plea for government intervention underscores the necessity of addressing its concerns about the BIS standards. Striking a balance between quality control and MSME preservation is paramount. Collaborative efforts between the government, BIS, and the industry are essential to formulate effective and scientifically-sound standards that secure both product quality and the livelihoods of countless MSMEs.

As the industry navigates these critical crossroads, the collective efforts of stakeholders will determine the fate of the Indian footwear landscape. It is imperative that a pragmatic and equitable solution be reached—one that ensures the sustenance of MSMEs while upholding the principles of quality and standardization.