The Footwear Industry has voiced its concerns over the recently introduced quality standards, making Bureau of Indian Standards (BIS) mandatory for all types of footwear except Hawai slippers, sandals, and sports shoes, which will be exempted until December 31, 2023. According to the industry, the current standards and implementation directions lack scientific basis and practicality. This has raised worries among the sector, primarily comprising Micro, Small, and Medium Enterprises (MSMEs), as compliance with these standards may lead to the closure of numerous MSME units, leaving only a handful of organized and multinational businesses to survive.

While the footwear industry is not against adhering to quality standards, it believes that the current BIS standards are not well-suited to the diverse range of footwear products in the market. For instance, one standard has been published for sports footwear – a general purpose standard that applies equally to an inexpensive injection-molded PVC shoe priced at Rs 300 and a high-end sports shoe produced by multinational companies costing Rs 3,000. The same issue extends to Hawai slippers, where identical standards are applied to both non-branded products priced at Rs 100 and branded products costing Rs 1,000.

Citing a government study, the industry highlighted that over 75% of the Indian footwear sector comprises unorganized players and provides employment to approximately 44.2 lakh people. To safeguard the interests of MSMEs, the industry has urged the government to continue exempting them from BIS requirements. Additionally, they have called upon the MSME Ministry, DPIIT (Department for Promotion of Industry and Internal Trade), and Commerce Ministry to address the situation promptly.

In order to alleviate the challenges faced by the sector, the industry proposes that a comprehensive approach be taken by BIS in formulating standards. They suggest providing a two to three-year grace period to allow all industries to adapt to the new standards effectively. This period would enable BIS to develop appropriate standards considering various product categories, product prices, manufacturing processes, and raw materials used.

The industry emphasizes that the enforcement of BIS should not be retrospective and should only apply to products manufactured after the final date of BIS implementation. This would prevent undue burdens on goods produced before the new regulations come into effect.

The concerns were raised during a press conference held in Calicut and attended by key representatives of the footwear industry, including VKC Razak, Chairman of the MSME Footwear Action Council, Maliyakkal Babu, General Convenor, PP Muzammil, President of CIFI Kerala Chapter, Rajith Mullasseri, President of Fooma Kerala, and Shamsudheen, General Secretary.

The government, after consultations with the footwear industry, had earlier decided to bring MSMEs under the ambit of compliance, effective from January 1, 2024. However, to provide adequate time for adaptation, micro enterprises were given an additional six-month grace period and are required to adhere to the guidelines from July 1, 2024. The industry now seeks government intervention to address their concerns and ensure a conducive environment for MSMEs in the footwear sector to thrive without compromising on quality standards.