The Indian government has drawn up a set of safety norms for new cars in the country, including mandatory off-set frontal crash and side-impact tests, in a move that will make vehicles safer but slightly more expensive.

Initial parleys between involved ministries and stakeholders like car-makers and testing agencies are underway to finalise and implement the programme christened Bharat New Vehicle Safety Assessment Program, three people familiar with the development said.

The development comes months after several popular small cars in the country failed a global crash safety test.

More people die in road accidents in India than anywhere else and the country accounts for about 10% all-road accident deaths in the world.

The government plans to introduce mandatory crash tests for new cars in a few years for new models. Cars sold in the country will also have star ratings based on safety performance, similar to the European New Car Assessment Programme (NCAP), a person familiar with the development said. A higher number of stars will reflect higher safety.

The government is expected to notify the crash test norms within a couple of months. It will be implemented in phases according to plans being worked out by National Automotive Testing and R&D Infrastructure Project (NATRiP).

"Government is studying the crash-test norms and assessment programmes from all major markets like Japan, Europe and the US to develop the most ideal mix for India," a government official said. "The detail protocol for safety-star rating in India is likely to be ready by mid-2014," the person added.

The new safety parameters will force car-makers to make major architectural changes in current models and withdraw older ones, said a person working closely with the government on the new norms.

"All the cars currently sold may not meet the norms even after major changes are carried out. Especially the older ones may have to be phased out by manufacturers as the cost to adapt to new norms would be prohibitive and unviable," the person added.

While most manufacturers have shied away from sharing investments required to raise the safety bar, experts said 8 to 15% of the ex-showroom price of a car could be added to meet the new norms, depending on the lifecycle of the car.

Experts are of the opinion automobile companies will have to change body design and strengthen the chassis and body cage. Airbags and other safety features like anti-lock brake system with electronic brake-force distribution and seat-belt reminders will give credits to the star rating of the car.

A partner and auto industry expert at a multi-national professional services network said proper laws on vehicle crash test will help all stakeholders.

"By harmonising India's vehicle safety standards with those abroad like the US and EU, government can ensure road worthiness of vehicles produced in the country. It will also help auto-makers to easily export locally-produced cars globally, where these standards are the norm and spread the involved costs over higher volumes," he said.

Earlier this year, all five Indian cars that took part in a crash safety test conducted by the UK-based NCAP - the Tata Nano, Maruti Alto 800, Ford Figo, Hyundai i10 and Volkswagen Polo - scored zero.