India weighs BIS exemptions for semiconductor, AI firms as Goyal pitches $150 billion chip market

India is working on a framework to ease Bureau of Indian Standards (BIS) certification requirements for high-tech manufacturers, including semiconductor and artificial intelligence (AI) companies, as it seeks to speed up the setting up of advanced manufacturing facilities and deepen its technology partnership with Japan.

Commerce and Industry Minister Piyush Goyal said in Tokyo on Tuesday that the proposed mechanism could provide exemptions at the sector, company, product or project level, addressing industry concerns that certification requirements could delay imports of specialised equipment and components needed to establish manufacturing lines.

The move comes as India seeks to build a semiconductor ecosystem spanning chip fabrication, equipment, chemicals and other supporting industries, with Goyal saying the country expects semiconductor demand to reach $150 billion by 2032.

“We will work on the framework as I get back to India and find a solution for bulk exemption or product or project-wise exemption or company-wide exemption,” Goyal said. The objective, he added, was to ensure timely supplies of products, goods and services for companies setting up manufacturing operations.

India targets $50 billion semiconductor investment

Goyal said the government expects to seed $50 billion of investment in semiconductors and associated industries in the near term, as New Delhi looks to strengthen domestic manufacturing and integrate Indian companies into global technology supply chains.

At a roundtable on Semiconductor and Artificial Intelligence in Tokyo, Goyal said, “We expect our semiconductor demand to grow up to $150 billion by 2032... We would like to make India a major global electronics manufacturing base.”

He added, “The complementarity between Japan and India makes it a very strategic opportunity. I hope that by working together, we can meet the aspirations of 1.4 billion Indians and the growing opportunities that Japan is looking for through the India growth story.”

The discussions between Goyal and Japan’s Economy, Trade and Industry Minister Akazawa Ryosei covered AI, semiconductors, equipment and chemicals, data centres, shipbuilding, green ammonia and high-precision engineering. Shipbreaking, textiles and engineering, procurement and construction (EPC) were also identified as potential areas for greater industrial cooperation.

BIS relief could ease high-tech equipment imports

The proposed exemptions are aimed at reducing regulatory friction for specialised machinery and components that may not have equivalent products available domestically. Under the existing BIS framework, certification is generally voluntary, although the government can make compliance mandatory for specified products through Quality Control Orders (QCOs.

The government is expected to balance faster imports for high-tech manufacturers with quality and safety requirements. New regulations and amendments aimed at semiconductor and automotive-component manufacturers are expected within two months.

Japan trade deficit remains a challenge

The regulatory push comes alongside a broader effort to expand India-Japan economic ties. Bilateral trade stood at $27.47 billion in FY26, with India importing around $21.43 billion from Japan and exporting $6.04 billion, leaving a merchandise trade deficit of about $15.4 billion.

Goyal has also highlighted India's growing data-centre opportunity, saying the country has secured $200 billion in commitments from global hyperscalers for data-centre investments.

The minister's comments came during his August 24-27 Japan visit, where he is leading a more than 200-member Indian business delegation focused on manufacturing, semiconductors, clean energy, automobiles, steel and other sectors.