The government has exempted SEZ units from QCO and BIS requirements for eligible imports, a move expected to accelerate semiconductor manufacturing projects.
The Indian government has introduced a major policy change aimed at speeding up the development of the country’s semiconductor industry by easing import-related compliance requirements for Special Economic Zone (SEZ) units.
Under the revised framework, SEZ developers and units will be exempt from mandatory Quality Control Orders (QCOs) and Bureau of Indian Standards (BIS) certification requirements for eligible imports. Industry experts believe the move will help reduce procedural delays and ensure faster access to specialized equipment, materials, and components required for semiconductor manufacturing projects.
The relaxation is expected to particularly benefit chip manufacturing and electronics facilities being established under the India Semiconductor Mission (ISM), a flagship initiative designed to build a domestic semiconductor ecosystem and reduce India’s reliance on imported chips.
Semiconductor projects often depend on highly specialized machinery and raw materials sourced from global suppliers. Industry stakeholders have argued that compliance-related bottlenecks can slow project execution timelines and increase costs. By removing these hurdles for SEZ-based operations, the government aims to create a more business-friendly environment for large-scale investments in advanced electronics manufacturing.
The latest decision builds on a series of reforms introduced over the past year to strengthen India’s semiconductor ambitions. These include amendments to SEZ regulations, reduced land requirements for semiconductor and electronics manufacturing zones, and faster approval mechanisms for chip projects. Several semiconductor investments, including major projects from Tata Semiconductor, Micron, and other industry players, have already received approvals under the revised framework.
Analysts say the import exemption could play a crucial role in accelerating project implementation, improving supply-chain efficiency, and attracting additional global investment into India’s emerging semiconductor sector. As the country pushes to establish itself as a key player in the global chip value chain, policy measures that simplify operations and reduce regulatory friction are expected to become increasingly important.
