Better chemical standards needed: BIS

India needs to have a domestic standardization policy in place with regard to the chemicals industry along the lines of the REACH regulation in the European Union (EU) if the sector is to flourish both internally and in terms of exports, said a representative from the Bureau of Indian Standards (BIS) at a seminar here on Tuesday.

“When we talk of the chemicals industry, one is aware of various European regulations which the industry has to meet when we have to export abroad – the REACH regulation. In my experience, we are normally meeting to fulfil the requirement of our exporters but when it comes to the in-house industry, are we really bothered?” questioned Parminder Bajaj, Standardization Chief, BIS.

The EU regulation was enforced on June 1, 2007 in order to better protect both the environment and human health from dangers caused by chemicals. It applies not only to chemicals used in industrial processes but also those one encounters daily in paints, cleaning products, furniture etc. The regulation “places the burden of proof on companies” according to the European Chemicals Agency (ECHA).

The event, hosted by the Confederation of Indian Industry (CII), aimed to focus on the consumption of final and intermediate products created with the help of chemicals. The presentations by both industry and government officials attempted to explain how the importance of standardization created value for both consumers as well as the industry.

“We need to improve our chemical industry and its standards and maybe we need to have an Indian REACH regulation also. This puts us at a level playing field. If we have the in-house capacity, it is not difficult to match the requirements of overseas buyers. It has to be an in-built system,” said Bajaj while speaking of consumption standards.

Consumption standards dictate the correct chemicals to be used in the right quantities in goods to ensure consumer safety while ensuring product quality. “As members of the ISO/IEC, we as a country are not very proactive when it comes to the subject of standardization. The US and European communities are formulating standards on various new subjects and services, things we cannot even fathom which require a standard. Should we not involve ourselves in the standard setting process?” Bajaj added.

A standardisation program would likely lead to better efficiency and more exports in an industry that accounts for 15% of the country’s manufacturing output. In 2012-13, the country exported Rs.1.78 lakh crore worth of chemicals but imports were to the tune of Rs. 2.34 lakh crore. Regulatory compliance is likely to be at the fore of policy debates over the next few years with a McKinsey report stating that India’s specialty chemicals industry has the potential to be worth between $80 billion to $110 billion by 2020.

“Since Indian growth is back on track, it is imperative to look at ways to enhance the performance of our products and services in a sustainable manner. Higher efficiency has a direct impact on energy, resource utilization and conservation. Thus, trademarks need to be defined to achieve for this objective. Standards, in other words, are important for driving the industry and economy towards higher efficiency and better safety,” said Dr. AJV Prasad, Joint Secretary, Department of Chemicals and Petrochemicals.

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