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BIS Certification: A Threat to Small Fastener Businesses & Supply Chain Stability
The Bureau of Indian Standards (BIS) certification, aimed at ensuring product quality, is set to disrupt the fasteners industry, particularly for small suppliers, dealers, and manufacturers. Large companies have already applied for BIS certification, and since they will be able to supply both small and large quantities, small suppliers and dealers will be forced to shut down their shops. If BIS is strictly enforced, it could cause a major supply chain crisis.
Challenges for Small Businesses
- High Cost & Complex Process: Small-scale suppliers and manufacturers face difficulties in obtaining BIS certification due to high fees, testing requirements, and bureaucratic hurdles.
- Restrictions on Stocking & Selling: Without BIS approval, dealers cannot stock or sell fasteners, leaving them with no choice but to shut down.
- Limited Domestic Manufacturing: Many fastener products are not currently manufactured in India and are imported, primarily from China and other countries. With BIS restrictions, these imports may also be blocked, further disturbing the supply chain.
- Disrupted Supply Chain: As imports get restricted and small sellers exit the market, businesses dependent on fasteners—including automotive, construction, and machinery industries—will face shortages and increased costs.
- Monopoly of Big Players: Since large manufacturers will now be able to supply both small and big quantities, they will dominate the industry, eliminating competition and making fasteners more expensive for end users.
- Job Losses & Factory Closures: With small manufacturers and dealers unable to sustain themselves, thousands of workers may lose their jobs, adding to economic distress.
The Need for a Practical Approach
While ensuring quality is important, a more balanced approach is required to prevent the collapse of small businesses. The government should consider:
- Easing BIS certification for small businesses by reducing costs and simplifying the process.
- Providing financial support to help manufacturers meet compliance requirements.
- Allowing a transition period to help businesses adapt and continue operations.
- Exempting products that are not yet manufactured in India from immediate BIS restrictions to ensure a smooth supply chain.
Without these measures, BIS implementation could severely impact the fasteners industry, leading to supply shortages, increased prices, and the closure of thousands of small businesses. A fair and phased implementation is necessary to balance quality control with business sustainability.
For more news and insights on the fasteners industry, visit FastenersWeb.com
