Why India's product standards need an update and a legal framework

There is a need for introducing a legal framework to ensure that new goods meet international standards

Indian manufacturers go the extra mile and provide requisite features like anti-lock braking system (ABS), airbags, disc brakes and other features for cars and motorcycles sold in international markets. However, since India does not have a comprehensive or technologically updated law, cars with seat belts as the only passenger safety feature can be sold in the country. But, it isn’t just Indian manufacturers who are guilty of selling dated goods in the country. Several global manufacturers, too, sell here goods which would be impermissible in international markets, and this is because the Indian market does not have regulations that mandate technologically advanced safety features.

Standards set by law are common in food products, drugs, medicines and certain consumables. However, in the important area of consumer protection — electronic goods and vehicles —  Indian standards, which are set under a complex web of regulations, may not be the latest which are being adopted internationally.

The Central Motor Vehicles Rules of 1989 (CMV Rules), for instance, have still not accounted for the mandatory use of airbags and ABS. While the CMV Rules provide for nearly 58 standards, these are accessible on the website of Society of Indian Auto-mobile Manu-facturers, rather than the Ministry of Road, Transport and Highways. Similarly, the Bureau of Indian Standards (BIS) has notified applicable standards to electronic goods and the Ministry of Electronics and Information Technology (MEITY) has mandated registration requirements for products, including applicable standards for certain electronic goods. However, in both cases, you would need tremendous patience, legal assistance and possibly an engineer to connect the dots on what the standards mean for a user, whether these are the latest standards and to what extent the standards are enforceable. For instance, in the case of laptops governed by Indian Standard Number S 13252(Part 1):2010, the standard can only be purchased. Neither the MEITY nor the BIS website provides information on the international standards for laptops. For automobiles, Rule 120 of the CMV Rules provides that vehicles should comply with standards as per ‘Part E of the Schedule VI to the Environment (Protection) Rules, 1986, when tested as per IS:3028-1998.’ This requires more references to different laws and regulations.

If the standards for vehicles appear outdated and scattered, the standards for electronic goods are indecipherable. The automobile and electronics industries have considerable maintenance costs attached to usage and it’s only fair that the benefits of technology which are being provided in other markets should be made available to consumers in India. The benefits of technology in relation to emission and safety should not be sacrificed merely because there is no legal mandate. The costs of poor emission controls and dated safety features have negative externalities and firms should take measures to avoid the same.

In the absence of a legal requirement to sell products incorporating the latest technology on safety and emission, we may have a race to the bottom, with manufacturers competing to sell cheaper goods. India’s consumer protection law is anchored in more traditional rules of damages and obligations of manufacturers. It is debatable if the Consumer Protection Bill, introduced in Parliament earlier this year, would change manufacturers’ obligations.

The government needs to do a lot more to ensure polluting vehicles are kept off the streets and cheap electronic goods are not brought into the market. There is a need to introduce a legal framework to ensure that new goods meet international standards. Indian standards are sometimes non-existent or outdated. In the absence of a legal or regulatory framework, the standards are not even enforceable. For the benefit of consumers, the standards in vehicles and electronic goods must be rigorously updated and made part of a legal or regulatory framework. Given the sensitivity attached to products like brake discs, tyres, power adaptors, batteries and airbags, it's is hoped that manufacturers take the lead in ensuring goods sold in India are comparable to international standards, even without a government mandate. Since manufacturers are able to provide world-class products in international markets, they should take the initiative in doing so in India.

As always, the law can play the catch-up and manufacturers can take the lead in offering features that are least harmful to the environment and incorporate international standards of safety. Independent of consumers’ exercise of choice, they must be educated about Indian and international standards.
 

Ananth is a Delhi-based lawyer and Srinivasan is a retired senior executive from the auto industry