India to amend rules within two months to ease semiconductor, auto component manufacturing: Piyush Goyal

India plans to revise its regulations and introduce new rules within two months to facilitate semiconductor and automotive component manufacturing, Commerce and Industry Minister Piyush Goyal announced on Monday during a fireside chat with Nikkei Asia in Tokyo. The minister met with two companies seeking to establish these industries in India, and their concerns were addressed during the discussions.

Goyal emphasized that India is not merely a "plus one" destination and assured the companies that the government will amend its regulations within the next two months to ensure a smooth transition.

The government has already simplified the Bureau of Indian Standards framework and is working to expedite the approval process, including for suppliers that may not be covered under the revised regulations. Goyal acknowledged that there might be instances where importing goods from other countries could hinder fair trading practices and lead to predatory pricing.

However, he maintained that it is difficult to accommodate the demands of certain sectors, and he is upfront about this concern when meeting with industry representatives.

The Union Cabinet has approved the Semicon 2.0 initiative, which aims to develop India's semiconductor design and manufacturing ecosystem. Goyal revealed that the government, in collaboration with the private sector, intends to invest around $50 billion in the semiconductor and associated industries over the next year and a half. Once that goal is achieved, India will move forward with Semicon 3.0, signifying a long-term commitment to the sector's growth.