India may exempt foreign tech firms from BIS norms to boost manufacturing

The Indian government is exploring a targeted exemption framework from Bureau of Indian Standards (BIS) compliance for foreign high-tech companies establishing manufacturing operations in the country, according to Commerce Minister Piyush Goyal. The proposed scheme would enable eligible firms to import specialized equipment and components without adhering to standard regulatory requirements, potentially streamlining setup processes for capital-intensive industries.

Under the framework being deliberated, exemptions could be granted on a company-specific, industry-wide, product-based, or project-based basis, providing flexibility tailored to different manufacturing scenarios. The initiative reflects the government's broader push to position India as a competitive destination for advanced technology manufacturing, particularly as global supply chains diversify away from traditional hubs.

The move seeks to address one of the key barriers foreign technology manufacturers face when establishing facilities in India—lengthy compliance procedures and certification requirements that can delay production timelines. By allowing selective exemptions for critical imports, the government aims to reduce administrative burdens while maintaining oversight through a structured approval mechanism.

The proposal comes as India aggressively pursues its manufacturing ambitions through schemes like Production-Linked Incentive (PLI) programs across sectors including semiconductors, electronics, and renewable energy. Government officials believe the BIS exemption framework would complement existing incentive structures and make India a more attractive investment destination for technology-intensive industries requiring specialized components not readily available domestically.