India is preparing a framework to exempt high-tech industries from certain Bureau of Indian Standards (BIS) certification requirements as the government seeks to make it easier for advanced manufacturing companies to establish operations in the country. Commerce and Industry Minister Piyush Goyal said on August 25 that the BIS has been instructed to work on an exemption framework, with semiconductor and artificial intelligence companies among the sectors expected to benefit.
The proposed change comes as India attempts to attract more investment into semiconductor manufacturing, AI infrastructure and other technology-intensive industries. Goyal said industry concerns over BIS certification had been noted and that the government wants to reduce regulatory friction without compromising the broader objective of maintaining quality standards. The announcement follows separate assurances that India will amend regulations and introduce new rules within two months to address concerns raised by semiconductor and automotive component manufacturers.
India Plans BIS Exemption Framework For High-Tech Industries
Goyal announced the proposed framework during a semiconductor and artificial intelligence roundtable in Tokyo on August 25. He said the government had instructed BIS to develop a mechanism for exemptions aimed at supporting high-tech industries.
The proposal is significant because India’s BIS framework covers a wide range of products and, although BIS certification is generally voluntary, the government can make compliance mandatory for specific products through Quality Control Orders (QCOs). These mandatory requirements are introduced for reasons including public interest, health and safety, environmental protection, prevention of unfair trade practices and national security.
The new framework is therefore expected to focus on situations where conventional certification requirements could create delays or unnecessary barriers for highly specialized technology products.
What Is Being Proposed?
| Area | Proposed Direction |
|---|---|
| Regulator | Bureau of Indian Standards |
| Government lead | Ministry of Commerce & Industry |
| Industries highlighted | Semiconductors, AI and other high-tech sectors |
| Proposed measure | Exemption framework for certain BIS requirements |
| Objective | Reduce regulatory friction and support manufacturing |
| Current status | Framework being developed |
| Immediate beneficiary | High-tech manufacturers and suppliers |
| Broader goal | Attract investment and strengthen domestic manufacturing |
The government has not yet published the final exemption framework or specified a complete list of products that will qualify. Therefore, companies should not interpret the announcement as a blanket exemption from BIS requirements across all high-tech industries.
Why BIS Certification Matters To Manufacturers
BIS certification is part of India’s broader product-quality and safety framework. For products placed under compulsory certification, manufacturers or importers must meet specified Indian Standards and obtain the required licence or Certificate of Conformity.
For conventional consumer products, these requirements can provide an important quality-control function. But high-tech manufacturing often involves specialized equipment, low-volume products and rapidly evolving technologies that may not fit easily into conventional certification frameworks.
This is particularly relevant to semiconductor manufacturing, where companies can require highly specialized production equipment and components sourced from global suppliers.
If every specialized product or piece of equipment has to pass a lengthy domestic certification process before entering a manufacturing facility, companies may face additional costs and delays.
Semiconductors Are A Key Focus
Semiconductors are among the industries most directly connected to the proposed reform.
India is attempting to establish a domestic semiconductor ecosystem spanning chip fabrication, packaging, testing, equipment and supporting components. The government has been trying to attract global companies and technology suppliers as part of that effort.
Goyal said on August 24 that India plans to amend regulations and introduce new rules within two months to address concerns raised by semiconductor and automotive component manufacturers. He also said the government had simplified the BIS framework and was working to ease approval processes, including for suppliers that may not otherwise be covered under revised regulations.
Semiconductor Manufacturing Chain
Semiconductor Investment
↓
Chip Design
↓
Fabrication
↓
Specialized Equipment
↓
Packaging & Testing
↓
Materials + Components
↓
Finished Chips
↓
Electronics / AI / Automotive
Reducing regulatory bottlenecks at multiple stages could therefore have an impact beyond chip fabrication itself.
AI Industry Could Also Benefit
Artificial intelligence is another sector specifically highlighted by the government.
India is seeking investment in AI computing infrastructure, data centers, advanced hardware and AI-related manufacturing. Many of these businesses depend on specialized equipment and components that may not be produced domestically in large volumes.
A more flexible certification regime could make it easier for international companies to bring specialized technology into India for manufacturing and research operations.
This could be particularly relevant to data-center and AI infrastructure projects, where hardware requirements evolve quickly and equipment may be sourced from multiple global suppliers.
Potential Benefits For AI And Semiconductor Companies
| Potential Benefit | Possible Impact |
|---|---|
| Faster approvals | Shorter manufacturing setup timelines |
| Lower compliance costs | Reduced administrative burden |
| Easier equipment imports | Faster access to specialized machinery |
| Greater supplier flexibility | Wider global sourcing options |
| Faster technology deployment | Quicker adoption of new equipment |
| More investment | Improved attractiveness of India as a manufacturing base |
The actual impact will depend on how narrowly or broadly the final framework defines eligible products and companies.
Government Wants To Attract High-Tech Manufacturing
The proposed BIS exemptions are part of a broader effort to improve India’s ease of doing business for advanced manufacturing.
Goyal’s comments in Tokyo came during a wider push to strengthen economic ties with Japan and attract investment into next-generation industries. A roughly 200-member Indian business delegation is accompanying the minister during his Japan visit, with technology, software, AI, manufacturing and engineering among the sectors represented.
The government is effectively trying to balance two objectives: maintaining product quality while making India’s regulatory system responsive to specialized industrial requirements.
That balance will be important because excessive exemptions could weaken quality controls, while overly rigid certification requirements could discourage investment.
Existing Exemptions Show How The System Can Be Adjusted
India has already introduced targeted exemptions for certain highly specialized equipment.
An amendment to the Electronics and Information Technology Goods compulsory-registration framework, effective June 15, 2026, provides exemptions for specified Highly Specialized Equipment (HSE), subject to conditions including an annual volume of fewer than 100 units per model and certain technical characteristics. These include three-phase power, single-phase power above 16 amperes, dimensions exceeding 1.5 metres by 0.8 metres, or weight above 80 kilograms.
This provides an example of how the government can use specific eligibility criteria rather than removing certification requirements universally.
Specialized Equipment
↓
Eligibility Criteria
↓
Volume + Technical Thresholds
↓
Specific Exemption
↓
Reduced Certification Burden
The proposed high-tech framework could follow a similar approach, although its final structure has not yet been announced.
Potential Impact On Foreign Investors
For global technology companies, regulatory predictability is often as important as the headline cost of establishing a manufacturing facility.
A company deciding between India and another Asian manufacturing location may evaluate how quickly it can import equipment, install production lines, obtain approvals and begin commercial operations.
If the BIS framework becomes more flexible for specialized high-tech products, India could become more competitive for these investment decisions.
The change could be particularly relevant to companies that manufacture equipment in small quantities or whose products are highly customized for individual semiconductor, AI or advanced-manufacturing facilities.
Automotive Components Could Also See Regulatory Changes
The BIS announcement is occurring alongside a broader review of regulations affecting automotive-component manufacturers.
Goyal said companies in the semiconductor and auto-component industries had raised specific concerns with the government and that new rules would be introduced within two months to accommodate their requirements.
This suggests that the government’s approach is not limited to one technology sector. Instead, it appears to be moving toward a more targeted regulatory framework for industries where specialized manufacturing processes and global supply chains make conventional approval systems less suitable.
Sectors Potentially Affected By The Reform Push
High-Tech Manufacturing
│
├── Semiconductors
├── Artificial Intelligence
├── Advanced Electronics
├── Specialized Equipment
└── Automotive Components
The precise scope, however, will depend on the rules eventually notified by the government.
Quality Standards Will Remain Important
The proposed exemptions do not mean that the government is abandoning standards.
BIS itself states that compulsory certification is used where product compliance is considered necessary for public interest, human, animal or plant health, environmental safety, prevention of unfair trade practices and national security.
For that reason, the key policy question will be how the government distinguishes between products where certification is essential and highly specialized products where existing requirements may create unnecessary friction.
A targeted exemption framework could allow India to preserve mandatory standards for safety-critical products while providing greater flexibility for specialized industrial equipment.
What Companies Should Watch
The most important development now will be the publication of the actual BIS framework.
Companies should watch for details covering eligibility, product categories, documentation, exemption duration, certification alternatives and whether exemptions apply to domestic manufacturing, imports or both.
| Key Question | Why It Matters |
|---|---|
| Which industries qualify? | Determines the size of the beneficiary pool |
| Which products are exempt? | Establishes practical scope |
| Are imports covered? | Important for global equipment suppliers |
| Are domestic manufacturers covered? | Determines impact on Indian factories |
| What are the eligibility thresholds? | Defines who can use exemptions |
| Will exemptions be permanent? | Affects long-term investment planning |
| What approvals remain? | Determines actual compliance burden |
| When will rules take effect? | Determines investment timelines |
Until these details are formally notified, the August 25 announcement should be viewed as a policy direction rather than a completed regulatory change.
India’s High-Tech Manufacturing Push
The BIS reform effort fits into a larger strategy to create an investment-friendly manufacturing environment.
The government’s BHAVYA industrial-park program, for example, is designed to develop 100 investment-ready industrial parks over six years, with dedicated spaces for startups, deep-tech, research and development and innovation-led enterprises. The scheme has an approved outlay of ₹33,660 crore.
These initiatives indicate that the government is trying to address manufacturing competitiveness through several channels: physical infrastructure, digital connectivity, regulatory reform and easier access to specialized industrial ecosystems.
For semiconductor and AI companies, the combination could become important as India attempts to establish itself as an alternative manufacturing and technology hub.
The Bigger Picture
India’s proposed BIS exemption framework for high-tech industries represents an attempt to remove regulatory friction from sectors that are central to the country’s next phase of industrial development. Semiconductors and AI require highly specialized equipment, global supply chains and rapid technology upgrades, making regulatory flexibility particularly important for attracting investment.
The challenge will be finding the right balance between speed and quality. BIS certification exists to protect safety and quality where mandatory standards are necessary, so a targeted exemption system could be more effective than a broad relaxation. If the government can create clear eligibility criteria and predictable approval processes, the reform could improve India’s competitiveness without weakening essential standards.
Looking Ahead
The next major step will be the BIS framework that defines which high-tech industries, products and equipment qualify for exemptions. Semiconductor and AI companies will be particularly interested in whether the rules cover specialized imported machinery, components and equipment used in manufacturing and research. The government’s commitment to introducing further regulatory changes within two months also suggests that additional details could emerge relatively quickly.
For India, the broader objective is to make high-technology manufacturing easier while retaining confidence in domestic quality standards. If the proposed exemptions are targeted effectively, they could reduce project delays, widen supplier choices and make the country more attractive to global semiconductor, AI and advanced-manufacturing companies. The eventual impact, however, will depend on the final rules rather than the announcement alone.
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