5 days ago
India Reconsiders BIS Standards Rules for High-Tech Manufacturing
India wants more companies to build advanced products and factories inside the country.
The government uses Bureau of Indian Standards rules to check quality and safety.
These rules can also help Indian manufacturers compete with imported goods.
However, some high-tech factories need special machines and parts that may not be made in India.
Making those machines go through regular certification can make factory construction slower and more expensive.
Japanese semiconductor and artificial intelligence companies said the rules were a hurdle.
Piyush Goyal has suggested considering exemptions for some equipment and components.
The goal is to keep products safe while making it easier to manufacture sophisticated goods in India.
The government is considering exemptions from Bureau of Indian Standards certification for specialised equipment and components used by high-tech companies.
Japanese semiconductor and artificial intelligence firms reportedly identified certification requirements as a barrier to establishing manufacturing facilities in India.
Standards were tightened after 2020 to improve quality, reduce import dependence and support domestic manufacturers.
Applying market-entry certification rules to factory equipment can increase costs, delay investment and hinder advanced manufacturing.
Piyush Goyal’s proposal has prompted calls for a framework distinguishing finished imports from specialised inputs used to manufacture in India.
- Who
- Commerce and Industry Minister Piyush Goyal, the Indian government, and high-tech companies including Japanese semiconductor and artificial intelligence firms.
- What
- The government is considering easing Bureau of Indian Standards certification requirements for specialised equipment and components used to establish advanced manufacturing facilities.
- Where
- India.
- When
- The proposal follows recent concerns raised by high-tech companies; the articles do not provide a specific date.
- Why
- To reduce costs and delays for companies building semiconductor, advanced electronics, precision manufacturing and artificial intelligence facilities, while retaining appropriate quality standards.
Targeted Flexibility
Strong Standards
Certification for factory equipment
Targeted Flexibility
Specialised machines and components that are used to build factories, rather than sold to Indian consumers, should receive exemptions or a separate certification process.
Strong Standards
BIS requirements should not be abandoned because standards support quality, safety and Indian manufacturers competing with imports.
Industrial protection and competition
Targeted Flexibility
Standards should not become a proxy for protectionism or prevent global companies from bringing advanced manufacturing ecosystems to India.
Strong Standards
Certification requirements can give domestic companies fairer competition against large foreign suppliers and help develop local supply chains.
Government procurement
Targeted Flexibility
Excessively limiting competition can raise costs and reduce incentives for Indian companies to become globally competitive.
Strong Standards
Maintaining requirements can protect domestic capabilities built under the existing industrial policy, provided the rules are applied appropriately.
Key facts
- Minister proposing changes
- Piyush Goyal, Commerce and Industry Minister
- Regulator
- Bureau of Indian Standards (BIS)
- Potentially exempted items
- Specialised equipment and components used to establish manufacturing facilities
- Companies raising concerns
- Japanese semiconductor and artificial intelligence firms
- Policy objectives
- Support domestic manufacturing, reduce import dependence and strengthen local supply chains
- Manufacturing areas affected
- Semiconductors, advanced electronics, precision manufacturing and artificial intelligence infrastructure
Sources
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