Govt plans standards exemptions to boost semiconductor investment in India

The proposed mechanism is expected to address regulatory concerns raised by foreign investors, particularly Japanese companies, and speed up the setting up of advanced manufacturing facilities in India.Union Commerce and Industry Minister Piyush Goyal addresses the 'India-Japan Next Generation Economic Partnership: From Chubu to India' event in Nagoya, Japan. (@PiyushGoyal/X via PTI Photo)The government is preparing major policy changes to make India more attractive for investment in semiconductors and other high-tech industries, with Commerce and Industry Minister Piyush Goyal announcing plans for a framework to exempt select equipment and components from mandatory Bureau of Indian Standards (BIS) certification.The proposed mechanism is expected to address regulatory concerns raised by foreign investors, particularly Japanese companies, and speed up the setting up of advanced manufacturing facilities in India.The government is working on a system under which specific industries, companies, projects or products could receive exemptions from BIS certification when required.Such targeted relief could significantly reduce the time taken to procure specialised machinery, equipment and critical components from overseas. The move is particularly important for semiconductor manufacturing, where plants depend on highly specialised machinery, gases, chemicals and electronic components, often produced by only a limited number of global suppliers.Delays in obtaining certification for even a single critical component can disrupt the supply chain and affect project timelines. A faster exemption process could therefore help companies source essential equipment more quickly and accelerate investments in India.QUALITY CONTROL CONCERNSJapanese companies have raised concerns over quality control orders and regulatory procedures while considering investments in India.The proposed framework is expected to provide greater regulatory flexibility while helping ensure that critical high-tech projects are not held up because alternatives to specialised imported components may not be readily available.The changes could also give fresh momentum to India's semiconductor ambitions.The government has approved 13 projects under SEMICON-1, which are expected to lay the foundation for around USD 19 billion in investments. Another USD 15 billion has been committed under SEMICON-2, with the government hoping to catalyse overall investments of about USD 50 billion across the sector.WHY JAPAN HOLDS KEYJapan is seen as a key partner in this effort because of its strengths in semiconductor equipment, materials, specialty chemicals, industrial gases and precision manufacturing. India, meanwhile, brings a large market, engineering talent and strong chip-design capabilities.The two countries are looking to combine these strengths to develop a broader semiconductor ecosystem and deepen cooperation across the supply chain.PIYUSH GOYAL’S JAPAN VISITThe policy push comes during Goyal's August 24-27 visit to Japan, where he is leading a delegation of more than 220 Indian industry representatives. He has met Japanese government and corporate leaders and sought to expand investment and industrial cooperation.India is looking at doubling the presence of Japanese companies from the current level of around 1,500, with Goyal saying, "We want 1,580 companies like Suzuki to emerge from India."His engagements included meetings with Sumitomo Corporation, Meiji Seika Pharma and Mitsubishi Corporation, while discussions with Japanese industry bodies focused on sectors ranging from capital goods and automobiles to strategic technologies.Cooperation in semiconductors, critical minerals and pharmaceuticals also figured prominently during the visit.The government has set a target of attracting 10 trillion yen in Japanese investment over the next decade.Goyal has assured Japanese industry that central and state governments will extend full support to investors in semiconductors as well as emerging sectors such as AI, quantum computing and data centres.Going forward, the proposed BIS exemption framework could become a key part of India's effort to remove bottlenecks for high-tech manufacturing.If implemented effectively, it could help bring in more Japanese and other foreign investments while accelerating the development of a domestic ecosystem for semiconductor machinery, materials, components and advanced technologies.- EndsPublished On: Aug 26, 2026 20:39 IST