The planned changes aim to simplify approvals and make it easier for semiconductor manufacturers to source equipment and components from global suppliers.
India will amend regulations and introduce new rules within the next two months to address concerns raised by semiconductor and automotive component manufacturers seeking to establish production in the country, Commerce and Industry Minister Piyush Goyal said on August 24.
Speaking at a fireside chat with Nikkei Asia in Tokyo, Goyal said he had met representatives of two companies looking to set up semiconductor and automotive component manufacturing operations in India. He said the companies had raised regulatory concerns, which were discussed and resolved during the meetings.
“I have assured them within the next two months India will amend the regulations and bring in new rules to accommodate their requests and ensure they have no problems as they bring manufacturing into India,” Goyal said.
According to the minister, the government has already finalised the broad framework for the changes. The revised rules are also expected to make it easier for companies setting up manufacturing facilities under the Make in India initiative to procure equipment, components and other inputs from international suppliers.
Goyal said the government has been simplifying the Bureau of Indian Standards (BIS) framework and is working to streamline approvals, including for suppliers that may not yet be covered by the revised regulations. This is particularly relevant for semiconductor manufacturing, where companies often depend on specialised equipment, components and materials sourced from global suppliers.
The minister said India also needs to protect domestic manufacturers from unfair trade practices in certain sectors. He noted that there could be situations where imports from particular countries are offered at prices that could undermine fair competition or put pressure on domestic producers.
At the same time, Goyal said India must ensure that its domestic and foreign companies operate under rules consistent with World Trade Organization (WTO) obligations.
The planned regulatory changes come as India steps up efforts to attract manufacturing investments in strategic sectors, including semiconductors and automotive components. The government is seeking to strengthen domestic manufacturing while integrating Indian companies into global supply chains.
Goyal, who is leading a large Indian business delegation during his visit to Japan, also highlighted opportunities for deeper cooperation between the two countries. He said India and Japan could expand partnerships across semiconductors, automotive components, artificial intelligence and space technology.
The minister rejected the idea of India being positioned only as a “China plus one” manufacturing destination. Instead, he said India should be viewed as an independent investment opportunity, supported by its large domestic market, young workforce and expanding manufacturing capabilities.
Goyal said Japan’s advanced technology and industrial expertise could complement India’s scale and workforce. Japanese companies could gain access to India’s domestic market and manufacturing ecosystem, while Indian companies could benefit from Japanese machinery, equipment and components.
He also pointed to potential opportunities in India’s space sector and said Japanese companies could participate in the country’s expanding space economy. At the same time, Japan’s ageing population could create opportunities for greater mobility of skilled Indian workers, as the Indian community in Japan continues to expand.
The minister said India would continue to engage with industry while developing policies for emerging sectors. He acknowledged that some areas may require regulatory changes as manufacturing capabilities evolve, adding that the government would remain responsive to industry concerns.
For the semiconductor sector, the proposed changes could help reduce regulatory friction around sourcing specialised equipment and components, potentially making it easier for global chip companies and suppliers to expand their manufacturing presence in India.
