The Federation of All India IT Associations (FAIITA) has raised alarm over the growing difficulties faced by Micro, Small, and Medium Enterprises (MSMEs) in complying with Standardization, Testing, and Quality Certification (STQC) requirements. According to FAIITA President Mr. Navin Gupta, the stringent compliance norms could force over 1,000 MSME units to shut down if urgent support measures are not taken.
Speaking on the issue, Mr. Gupta said that while the intent behind STQC certification is to bolster data security, the process has become a costly and complex burden for small players in the IT ecosystem. “The added burden of compliance can lead to operational difficulties, and if not addressed promptly, we risk witnessing the closure of over 1,000 MSME units across the country,” he warned.
Mr. Gupta noted that MSMEs play a crucial role in driving innovation and employment in the IT sector, but are now at risk due to lack of technical expertise and financial resources to meet the certification norms.
“Our MSMEs, which are vital to the economy, need support and resources to navigate these stringent requirements. Without adequate assistance, we jeopardize the livelihoods of many workers and the overall health of our industry,” he said.
In light of the current economic climate and rising input costs, FAIITA has called on the government, industry bodies, and financial institutions to extend support to MSMEs. Mr. Gupta emphasized the need for collaborative action to create an ecosystem that allows small enterprises to adapt to new compliance requirements without disrupting their operations.
“It is imperative that we create an environment where MSMEs can thrive, adapt to these challenges, and remain competitive. Collaborative efforts are essential to prevent operational disruptions and ensure sustainable growth,” he added.
FAIITA has urged authorities to consider relaxation measures, subsidies, or phased implementation plans to ensure that smaller firms are not edged out of the market due to regulatory compliance hurdles.
