India’s chemical industry is a driving force of the national economy, contributing significantly to manufacturing output and export revenue. However, the growth of the sector has outpaced the development of a centralized regulatory framework for chemicals. Chemical safety in India is currently governed by a patchwork of legislation, including the Environment (Protection) Act, the Factories Act, and sector-specific laws, each of which operates in isolation. This fragmented system often results in compliance ambiguity, regulatory inefficiencies, and risks to human and environmental health.

To address these challenges, the Indian government introduced the Indian Chemicals (Management & Safety) Rules (ICMSR). These rules aim to establish a unified, risk-based framework for the management of chemicals throughout their lifecycle - from manufacture to disposal. The ICMSR underwent five rounds of public consultation between 2020 and 2021, reflecting the government’s efforts to balance industry concerns with public health priorities.

 Overview of ICMSR

The ICMSR framework is based on global best practices including the European Union’s REACH regulation. It introduces obligations for all stakeholders involved in the manufacture, import, and handling of chemicals. These obligations include:

● Notification of Substances: Companies handling more than one tonne of a chemical per year must notify the authorities with basic data.

● Registration of Priority Substances: Certain hazardous substances must be registered with detailed safety information.

● Chemical Safety Assessments (CSA): For registered substances, companies must conduct and submit risk assessments.

● Authorization and Restriction: Continued use of high-risk chemicals will require special authorization.

● Import and Trade Controls: Stricter import regulations will ensure conformity with international safety standards.

● Supply Chain Communication: Industries must share safety data and handling guidelines throughout the supply chain.

These measures are designed to promote transparency, accountability, and long-term sustainability in India’s chemical industry.

Industry Perspectives: ICMSR Survey Findings (March 2025)

In March 2025, a survey was conducted to assess industry perspectives on ICMSR. The survey received 127 responses from 101 organizations, including manufacturing companies, consultancies, and institutions.

Key Findings:

● 79.5% (101 respondents) support the ICMSR framework.

● 7.1% (9 respondents) were opposed.

● 13.4% (17 respondents) expressed uncertainty or conditional support.

Sectoral and Professional Insights: Multinational corporations and large domestic manufacturers were more likely to support the regulation, seeing it as a way to improve global competitiveness. Conversely, small and medium-sized enterprises (SMEs) expressed concerns about compliance costs and administrative complexity. Regulatory professionals and senior technical staff were largely supportive of ICMSR, recognizing its alignment with international standards and its potential to improve chemical safety in India.

These findings highlight widespread support for ICMSR, but also point to the need for targeted capacity building efforts, especially for SMEs, as they navigate the regulatory transition.

Survey Findings on the Globally Harmonized System (GHS)

The same survey also explored industry perspectives on the adoption of the Globally Harmonized System (GHS) of classification and labelling of chemicals.

Findings:

● 66.1% (84 respondents) support the implementation of GHS.

● 6.3% (8 respondents) were opposed.

● 27.6% (35 respondents) were undecided or expressed conditional support.

While support for GHS was slightly lower than for ICMSR, the majority of stakeholders recognized the benefits of harmonizing chemical hazard communication. Many respondents, particularly smaller companies, indicated a need for additional guidance on compliance requirements, documentation formats, and implementation timelines.

Sectoral trends mirrored the ICMSR responses: larger companies and professionals with regulatory expertise were more supportive, while SMEs emphasized practical implementation challenges. These findings point to the need for phased implementation, training programs, and financial assistance to promote widespread and effective GHS compliance.

Why India Needs ICMSR

The case for ICMSR is based on four main considerations: regulatory clarity, environmental protection, trade competitiveness, and innovation.

First, India’s current regulatory fragmentation creates uncertainty for both regulators and businesses. A single, coherent framework such as ICMSR can eliminate overlap, reduce compliance ambiguity, and improve enforcement consistency.

Second, ICMSR is essential to protect human health and the environment. Mismanaged hazardous chemicals can lead to industrial accidents, water and air pollution, and long-term ecological damage. ICMSR introduces systematic risk evaluation mechanisms to address these issues at their source.

Third, the regulation enhances India’s standing in international markets. Global buyers are increasingly demanding safety documentation aligned with international regulations. ICMSR will enable Indian exporters to meet these expectations, thereby improving market access and strengthening trade partnerships.

Finally, ICMSR encourages sustainable innovation. By identifying and restricting substances of very high concern (SVHCs), it encourages the development of safer alternatives and the adoption of green chemistry practices. Over time, this shift supports long-term industrial resilience, reduced liability, and environmental responsibility.

Role of GHS

The Globally Harmonized System (GHS) plays a complementary role to ICMSR by standardizing how chemical hazards are classified and communicated. Developed by the United Nations, GHS ensures that everyone - from chemical handlers to regulators and consumers - receives consistent and understandable hazard information.

In India, full adoption of GHS would bring numerous benefits. First, it would improve workplace safety by ensuring that all users can identify hazards through internationally recognized pictograms, signal words, and safety instructions. This is especially important for workers who may not be familiar with complex technical terminology.

Second, GHS enhances India’s export capability. Many countries require GHS-compliant labelling and Safety Data Sheets (SDS) for imports. Without harmonized standards, Indian manufacturers face delays, additional costs, or even rejection of shipments.

Third, GHS reinforces the broader goals of ICMSR. By requiring a common language for hazard communication, it enables better coordination across the supply chain and strengthens regulatory enforcement. Information from GHS-compliant SDSs will be instrumental for chemical risk assessments, decision-making, and training.

Currently, India’s implementation of GHS is partial, relying on sector-specific guidelines. Mandating full adoption under ICMSR will fill critical gaps, ensure consistency, and support seamless integration into global markets.

Conclusion

India’s chemical sector is poised for continued growth and global integration. However, this growth must be accompanied by a modern regulatory framework that ensures chemical safety, promotes transparency, and encourages innovation. The Indian Chemicals (Management & Safety) Rules (ICMSR), along with full-scale adoption of the Globally Harmonized System (GHS), provide a strong foundation for achieving these goals.

Survey data shows that most industry stakeholders support both ICMSR and GHS, particularly those in larger companies and regulatory roles. However, successful implementation will depend on inclusive strategies that provide training, financial support, and phased timelines - especially for SMEs.

By embracing ICMSR and GHS, India can not only reduce chemical-related risks but also enhance its reputation as a responsible, sustainable, and globally competitive industrial hub.