New Delhi/Tokyo: India will work on a framework to exempt high‑tech manufacturers from Bureau of Indian Standards (BIS) certification requirements for equipment and components imported into the country for manufacturing, Union Commerce and Industry Minister Piyush Goyal said on Tuesday, signalling an effort to ease supply chain bottlenecks for the semiconductor and AI equipment sector.
Exemption plan sparked by Japanese industry concerns
Goyal, who chaired a roundtable with chief executives of Japanese semiconductor and artificial intelligence companies in Tokyo, said the government has already instructed BIS and the Commerce Ministry to design the mechanism after concerns were raised by Japanese firms including Tokyo Electron. He said the model for exemptions could vary — from broad bulk waivers, to product‑ or project‑based and even company‑specific relief.
"We will work on the framework as I get back to India and find a solution for bulk exemption or product or project‑based exemption or company‑based exemption," Goyal said.
Officials signalled the measure is intended to ensure timely arrival of machines and components needed by manufacturers, a common complaint among global suppliers who say standard certification processes can delay commissioning of high‑precision plants.
How this ties to India’s semiconductor ambitions
Goyal framed the move within a broader campaign to build a resilient semiconductor ecosystem. He said India and Japan are "natural allies" in this effort, with India offering a large electronics market and engineering talent, while Japan contributes strengths in equipment, materials, speciality chemicals and precision process technologies.
The minister reiterated government projections that domestic semiconductor demand could rise to USD 150 billion by 2032. He also outlined recent public support under the country’s semiconductor programmes: the first phase offered about USD 10 billion in incentives and helped attract roughly USD 19 billion of investment across 13 projects. Goyal said an additional USD 15 billion has been committed for the next phase (Semicon 2.0), which the government expects could help seed about USD 50 billion in investments.
| Item | Amount (USD) |
|---|---|
| Semiconductor demand by 2032 | 150 billion |
| Semiconductor programme Phase I incentives | 10 billion |
| Investment seeded across 13 projects | 19 billion |
| Committed for Semicon 2.0 | 15 billion |
| Expected investment seed from Semicon 2.0 | 50 billion (anticipated) |
Goyal also invited Japanese companies to participate across chip design, semiconductor machinery and materials, fabrication, advanced packaging, research and development, and talent development. He said India’s first semiconductor fabrication unit is expected to be commissioned in 2028.
Regulatory and infrastructure assurances
Beyond certification relief, the minister assured companies that the government would address regulatory complexities, including issues around Special Economic Zone (SEZ) notifications. He named locations such as Dholera and Jagiroad as semiconductor sites that would receive support for reliable power, ultra‑pure water and clean‑room infrastructure — all critical inputs for chip fabrication.
- Who raised the issue: Japanese semiconductor and AI firms, including Tokyo Electron.
- What is proposed: A BIS exemption framework — options include bulk, product‑level, project‑level or company‑specific exemptions.
- Why it matters: Faster clearance of equipment and components can reduce delays in setting up high‑precision manufacturing and attract foreign investment.
Industry reaction was not detailed in the Tokyo meeting report, but the plan reflects an ongoing balancing act for regulators: safeguarding product standards and safety while keeping certification procedures from impeding time‑sensitive, capital‑intensive projects. For semiconductor fabs and advanced packaging lines, even short delays in equipment delivery or rigging can translate into significant cost and time overruns.
The proposed BIS relief could help fast‑track installation and testing of specialised equipment, but it will also raise questions about how regulatory oversight and quality assurance will be maintained if firms or projects are exempted from standard certification processes. The government’s next steps will be closely watched by both foreign investors and domestic manufacturers as India attempts to convert policy signalling and incentives into on‑the‑ground capacity.
Note: The details above are based on statements made by the minister during a roundtable in Tokyo and the directives reportedly issued to BIS and the Commerce Ministry.
