Goyal promises BIS certification relief for high-tech sector firms

The objective is to ensure timely availability of equipment, goods and services for high-tech companies setting up manufacturing operations in India and support 'Make in India' initiative

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

Goyal said he had taken note of concerns raised by Japanese companies over BIS certification requirements and that the government had already instructed the BIS and the Commerce and Industry Ministry to work on a framework to address the issue.

The minister was addressing representatives of Japanese firms from semiconductors and AI sectors here.

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

 

The objective is to ensure timely availability of equipment, goods and services for high-tech companies setting up manufacturing operations in India and support the government's 'Make in India' initiative, Goyal said.

"I have noted some of the concerns that were flagged today. The concerns about BIS certification. I'm happy to share with you that we have taken action yesterday itself.

"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 program, 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.

The issue was raised by an official from the Tokyo Electron, a major Japanese semiconductor equipment manufacturer.

"We'll be creating a framework which will either give company level or industry level exemptions. 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, so that we can have timely supply of products, goods, and services, and support your work in India," Goyal said.

The move would be relevant for semiconductor companies, which require specialised equipment and components to establish manufacturing facilities.

Certain firms has raised issues that mandatory BIS requirements and complex certification procedures for imported parts and equipment delay operations.

Goyal cited companies such as Tokyo Electron, saying high-tech firms entering India to manufacture semiconductor products would maintain high quality standards even if their equipment and components were available at lower prices.

"Sky is the limit in terms of potential. It is for industry from both the Indian side and the Japanese side to grab the opportunity," he said adding "We will be happy to support you in your search for partner investors in India, and we would like to make India a major global electronics manufacturing base".

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

The Union Cabinet has approved Semicon 2.0 for the development of India's semiconductor design and manufacturing ecosystem, with a total budget outlay of Rs 1,27,500 crore.

"Apart from that, states give incentives, and in the aggregate, we believe that Semicon 2 should be in a position to seed about USD 50 billion of investments," Goyal said.

Semicon 2.0 will have six pillars including design of chips, he said adding in the second pillar of machines and materials, companies involved in manufacturing, R&D, chemicals and gases are welcome.

"We hope that this will be the foundation for sustainable growth in India and will help develop the precision manufacturing," the minister said.

He added that in the third pillar, India is looking at setting up more fab units and the first fab is scheduled to be commissioned in 2028.

"The world is showing greater confidence in India. We will make efforts to attract more manufacturers to come to India to set up fabs and manufacture chips, including silicon fabs, compound semiconductor fabs, discrete component fabs, display fabs, etc," he said.

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

"We are working on those lines, so that between Dholera and Sanad, we can create social infrastructure like schooling, lodging, hospitals, restaurants, and hotels," he said.

On issues related to special economic zones (SEZs), the minister assured timely action to enable Japanese companies avail themselves of incentives under the SEZ, or Export Oriented Unit (EoU) or Manufacturing and Other Operations in Warehouse (MOOWR) frameworks, depending on their requirements and location.