The government will create a framework of exemptions from compliance with standards mandated by the Bureau of Indian Standards (BIS) for high-tech companies looking to set up manufacturing bases in India, Commerce and Industry Minister Piyush Goyal said on Tuesday.
“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 coming in to promote the Make in India programme,” the minister said at a roundtable on semiconductors and artificial intelligence in Tokyo.
The framework for exemptions from BIS certification will cover equipment and components that companies need to bring to India to support their manufacturing operations.
“We will 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 exemptions, or product- or project-based exemptions, or company-based exemptions, so that we can have timely supply of products, goods and services, and support your work in India,” the minister added.
The challenges in complying with BIS standards were flagged by Japanese companies such as semiconductor production equipment maker Tokyo Electron and others looking to establish a presence in India.
On the issue of regulatory complexity, raised particularly by Fuji Electric, the minister said: “At the central level, you will not find us wanting, but I assure you that even at the state or local level, we will stand with you and are willing to support you fully.”
India is a large and growing electronics market, with demand expected to reach up to $150 billion by 2032.
“We are now rapidly expanding, particularly in the fabrication and packaging ecosystem. We are giving significant government incentives. Semicon 1 provided about $10 billion and has seeded investments of roughly $19 billion in the industry through 13 approved projects. We have recently committed another $15 billion for Semicon 2 and are committed to providing even more once we exhaust this $15 billion,” Goyal said, adding that Semicon 2 should be in a position to seed about $50 billion in investments.
“I see a Japanese footprint in India’s transformation, and our progress towards building a semiconductor industry is beginning to bear fruit. The CG Power facility in Sanand, one of the first plants to commence commercial production, is anchored by Japan’s Renesas Electronics. This is a lighthouse project among the $19 billion worth of projects that are already underway,” Goyal said.
He listed six pillars of India’s semiconductor development: designing and creating intellectual property; developing machines and materials; setting up more fabrication units; strengthening ATMP (Assembly, Testing, Marking and Packaging) and OSAT (Outsourced Semiconductor Assembly and Test) capabilities; conducting research and development for more sophisticated chips; and developing talent.
“We have 315 universities now training our students in complex chip design using the latest EDA tools, and so far, 68,000 students have been trained at different levels. If we wish to develop this process further and deepen the level of engagement with Japanese companies, we can promote training in our colleges and universities,” the minister said.