BIS certification relief for hi-tech sector firms on anvil: Piyush Goyal

TOKYO: 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 hightech 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.

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 $150 billion by 2032,” he said.

Influencing factors for short-term investments

Meanwhile, Japanese financial and investment institutions have expressed confidence in India’s longterm growth prospects, while flagging currency movements and certain regulatory and policy issues as factors that could affect investment decisions in the short term, the commerce and industry ministry said.“The Japanese institutions have reiterated that their longterm strategic outlook on India remains strongly positive, while noting that currency movements and certain regulatory and policy considerations can influence shortterm investment decisions,” it said. Goyal welcomed the feedback and reiterated the government’s commitment to continuously improving the ease of doing business and creating a more seamless investment environment.