Goyal signals BIS certification exemption for high-tech companies, including those from Japan

Tokyo: Commerce and industry minister Piyush Goyal Tuesday said the government is working on a framework to exempt high-technology companies, including those from Japan, from mandatory Bureau of Indian Standards (BIS) certification for equipment and components needed to set up manufacturing facilities in India.

The framework could provide exemptions at the company, industry, product or project level, depending on the requirements.



At a roundtable on AI and semiconductors, Goyal said he had taken note of concerns raised by Japanese companies over BIS certification requirements and that the government had already instructed the bureau and the commerce and industry ministry to work on a framework for addressing the issue.

"We have already instructed BIS and the ministry of commerce and industry to work on a framework to support high-tech industry, not necessarily only Japanese companies, but high-tech industries coming in to promote the Make in India programme, to create a framework of exemption from BIS certification required for all the equipment and components that they need to bring to India to promote their manufacturing in India," he said.

Certain firms have flagged that mandatory BIS requirements and complex certification rules for imported parts and equipment delay operations. The aim is to ensure timely availability of equipment, goods and services for high-tech firms setting up manufacturing operations in India and support the 'Make in India' initiative.

The issue was raised by a representative of Tokyo Electron, a major Japanese semiconductor equipment maker. Goyal said high-tech firms entering India to produce semiconductor products would maintain high quality standards even if their equipment and components were available at lower prices.

India is a large and growing electronics market and "we expect our semiconductor demand to now grow up to $150 billion by 2032," Goyal said.

On Semicon 2, the minister said it should be in a position to seed about $50 billion of investments and will have six pillars including design of chips. He said adding the second pillar is focused on machines and materials where companies involved in manufacturing, R&D, chemicals and gasses are welcome.

"We hope that this will be the foundation for sustainable growth in India and help develop the precision manufacturing," said Goyal. He said in the third pillar, India is looking to establish more fab units, and the first fab is slated for commissioning in 2028.

On an issue raised by a representative from Fuji Electric on social infrastructure development, he said the government has created such infrastructure in the 11 Japanese industrial townships in the country.

Bilateral meets

Goyal met Akazawa Ryosei, minister of economy, trade and industry of Japan wherein they discussed ways to further boost bilateral trade, investment and industrial cooperation, building on the momentum of Prime Minister Sanae Takaichi's visit to India in July.