The government is planning major policy changes to make India more attractive for semiconductor and other high-tech investments. Commerce and Industry Minister Piyush Goyal said a new framework is being considered to allow selected equipment, components and projects to get exemptions from mandatory BIS certification.
The move is aimed at addressing concerns raised by foreign investors, especially Japanese companies, and helping advanced manufacturing projects start faster.
FASTER ACCESS TO SPECIALISED EQUIPMENT
The proposed system could allow exemptions for specific industries, companies, projects or products.
This would help companies import specialised machinery and critical components without waiting for lengthy certification procedures. This is particularly important for semiconductor plants, which rely on specialised machines, chemicals, gases and electronic components supplied by a limited number of companies worldwide.
Even a delay involving one important component can slow down an entire project. Faster exemptions could therefore help companies complete projects more quickly.
ADDRESSING QUALITY CONTROL CONCERNS
Japanese companies have raised concerns about India's quality control orders and regulatory procedures.
The proposed framework is expected to provide more flexibility while ensuring that high-tech projects are not delayed when specialised imported products do not have easily available alternatives in India.
The move could also support India's semiconductor plans. The government has approved 13 projects under SEMICON-1, involving about $19 billion in expected investment. Another $15 billion has been committed under SEMICON-2, with the government aiming to attract around $50 billion in total investment to the sector.
JAPAN IS A KEY PARTNER
Japan is important to India's semiconductor ambitions because of its expertise in semiconductor equipment, materials, specialty chemicals, industrial gases and precision manufacturing.
India, meanwhile, offers a large market, engineering talent and strong chip-design capabilities. Both countries are looking to combine these strengths to build a wider semiconductor supply chain.
GOYAL'S JAPAN VISIT
The policy push comes during Piyush Goyal's August 24–27 visit to Japan. He is leading a delegation of more than 220 Indian business representatives and meeting Japanese government and industry leaders.
India wants to increase the number of Japanese companies operating in the country from around 1,500. Goyal has also set a target of attracting 10 trillion yen in Japanese investment over the next decade.
His meetings have covered sectors including automobiles, capital goods, pharmaceuticals, semiconductors, critical minerals and other strategic technologies.
The government has also promised support for Japanese investors in areas such as semiconductors, AI, quantum computing and data centres.
If implemented properly, the BIS exemption system could reduce regulatory delays and encourage more Japanese and other foreign companies to invest in India's high-tech manufacturing sector.
