Semicon push: Regulatory norms for high-tech industries to be eased, says Goyal

In a bid to bolster Japan's involvement in India's semiconductor and electronics manufacturing sector, Commerce and Industry Minister Piyush Goyal pledged to ease regulatory obstacles and establish a Japan-friendly social infrastructure at key locations, including Dholera. During the Semiconductor and AI roundtable, Goyal highlighted that concerns surrounding BIS certification have been addressed by the government, who are working on a framework to exempt high-tech industries from the mandatory certification.

This framework could provide a company-level or industry-level exemption, with the option for a bulk exemption or product/project-based exemption as well. Goyal assured Japanese companies that the government would provide support at both central and local levels, including Dholera and Sanand, where social infrastructure such as schooling, lodging, hospitals, restaurants, hotels, and possibly a golf course will be created.

India's semiconductor market is projected to reach $150 billion by 2032, making it a crucial market for Japanese companies. Goyal encouraged Japanese participation in the semiconductor value chain, from chip design and equipment to fabrication, packaging, research, and talent development. The partnership between India and Japan has evolved since the 2023 Memorandum of Cooperation (MoC) between MeitY and METI, with incentives of $10 billion already helping seed around $19 billion in investments under the first phase of the government's semiconductor program.

The government has committed another $15 billion for the second phase, which could reach $50 billion with state incentives. Goyal emphasized the growing electronics production in India, with exports reaching nearly $45-50 billion in recent years, and expressed optimism about Japan's growing presence in India's semiconductor transformation.