This is Hamamoto from TIMEWELL. Today I want to share information on the regulatory landscape that is now essential knowledge for anyone doing business in India.
Under the "Make in India" policy, India is an attractive market for many Japanese companies. At the same time, the Indian government has been rapidly tightening import regulations in recent years to protect and develop domestic industries — creating significant hurdles for exports from Japan. Three trends stand out: the sharp expansion of India's own mandatory certification regime (BIS certification), the introduction of new cybersecurity regulations, and tightened import restrictions and investment controls with China clearly in mind.
This article organizes the three most important regulatory pillars for exports to India — covering what is actually happening and what companies can do about it.
1. The Reality of India's Massive Export Barrier: The Mandatory BIS Certification System
The BIS (Bureau of Indian Standards) mandatory certification system is unavoidable for exports to India. Designed to ensure product quality and safety, the system's tightening requirements and expanding scope have become a de facto non-tariff barrier standing in the way of many exporting companies.
The Carrot and Stick Accelerating "Make in India"
Behind the tightening of the BIS certification system is the "Make in India" manufacturing promotion policy driven by the Modi government. To strengthen the competitiveness of domestic manufacturing and reduce import dependence, the Indian government has strategically deployed both a "carrot" — subsidies through schemes like the PLI (Production-Linked Incentive) — and a "stick" in the form of tightening BIS certification requirements.
The intent is to incentivize domestic production by imposing strict standards on imported goods. The cost of obtaining BIS certification for a company that manufactures exclusively overseas tends to be substantially higher than for a company with a local production base in India, and many foreign companies are being pushed to shift to local manufacturing in India.
Rapidly Expanding Product Coverage
The severity of this "stick" is illustrated by the explosive growth in the number of products subject to mandatory certification. A figure of approximately 100 product categories in 2014 had ballooned to 773 by October 2025 — more than a sevenfold increase. It has been suggested that the number could reach 1,000 to 1,200 within the next few years.
Coverage extends across an enormous range: from products in key industries such as cement, steel, and automotive components, to IT and electronic devices such as LED bulbs, mobile phones, and laptops, to toys, chemicals, and food-related products. When screws and bolts were added to the list in 2024, the impact on the supply chains of many manufacturers was significant.
| Certification scheme | Examples of major product categories |
|---|---|
| Scheme 1 (ISI Mark Scheme) | Cement, batteries, automotive components, medical devices, steel products, chemicals, fertilizers, polymers, textiles, kitchen appliances, LPG-related equipment, etc. |
| Scheme 2 (CRS: Compulsory Registration Scheme) | Laptops, tablets, televisions, printers, scanners, mobile phones, power adapters, LED lamps, POS terminals, and other IT and electronic devices |
Because the covered products span such a wide range, cases are common where companies are unaware that their products are subject to regulation and find their shipments detained at Indian customs.
The Reality of Complex Procedures and Long Lead Times
A second major hurdle in obtaining BIS certification is the complexity of the procedures and the long lead times. When a foreign manufacturer seeks certification, the process generally follows the FMCS (Foreign Manufacturers Certification Scheme), and it is far from simple.
The application requires the designation of an Authorized Indian Representative (AIR) fluent in India's official languages, and involves many steps: preparing application documents, an initial factory inspection, product testing at an Indian testing laboratory, and periodic audits after certification is obtained. The factory inspection requires bringing inspectors from India, with their travel and accommodation costs borne by the applicant.
Given the complexity of this process, it is not unusual for certification to take six months to a year or more. In recent years, as the number of covered products has increased, the workload on BIS inspectors has grown and assessments are taking longer than anticipated. For the IT and electronics industries, where product lifecycles are short, this is a particularly serious problem.
A JETRO survey found that over 70% of Japanese companies operating in India reported that the BIS certification system had affected their business, with "time to approval" (73.2%) and "complex procedures" (72.6%) cited as the most significant concerns by a wide margin.
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2. The Less Visible Barrier — Cybersecurity and Telecommunications Equipment Regulations
The rapid digitalization of the Indian market has brought new challenges in the form of tightened cybersecurity regulations. For companies dealing in telecommunications equipment or IT products, compliance with these regulations is unavoidable.
A Increasingly Complex Telecommunications Equipment Certification System
To sell, import, or use telecommunications equipment in India, compliance with the MTCTE (Mandatory Testing and Certification of Telecommunications Equipment) scheme established by TEC (Telecommunication Engineering Centre) is required.
This scheme is designed to ensure that all equipment connected to India's telecommunications network meets security and technical standards. Originally focused on fixed-line phones and modems, its scope has expanded to include routers, switching hubs, IoT gateways, smartphones, and more. Phase VI came into effect in August 2025, adding further products to the regulated list.
Products with wireless functionality (devices equipped with Wi-Fi or Bluetooth) must obtain ETA (Equipment Type Approval) from WPC (Wireless Planning & Coordination Wing) in addition to MTCTE.
When exporting products with multiple features, it is essential to accurately understand which certification applies to which component, and to prepare in advance in a planned manner.
One of the World's Strictest Cybersecurity Incident Reporting Requirements
The most significant impact on companies from India's cybersecurity regulations is the directive issued by CERT-In (Computer Emergency Response Team, India) in April 2022.
The most notable requirement in this directive is the obligation to report cybersecurity incidents to CERT-In within 6 hours of detection. This is an extremely strict reporting deadline by global standards, requiring sophisticated internal systems and processes to rapidly detect an incident, assess its scope, and file a report.
The scope of reportable incidents covers 20 categories, from unauthorized access and DDoS attacks to data breaches and ransomware attacks. Meeting this rapid reporting obligation requires 24/7 monitoring systems and pre-defined escalation flows for incident response.
A New Data Protection Framework: The Digital Personal Data Protection Act
In August 2023, India enacted a new data protection law: the Digital Personal Data Protection Act, 2023. Like the EU's GDPR, it establishes principles for the processing of personal data, rights for data subjects, and obligations for companies handling personal data.
Companies are required to obtain consent when collecting personal data, and notification to the Data Protection Board is mandatory in the event of a data breach. Penalties for violations can reach up to 2.5 billion rupees (approximately 4.5 billion yen), making a review of data governance frameworks urgent.
These regulations affect not just the IT and telecommunications sectors, but all companies handling personal information. Building a data management framework is now a prerequisite for doing business in India, alongside product compliance.
3. Geopolitical Risk Made Tangible — Tightening the "Ring Around China"
One element of India's regulatory tightening that cannot be overlooked is the movement driven by India's relationship with China. The Indian government has deployed a multi-pronged policy combining import restrictions, investment controls, and domestic industry protection in pursuit of reduced economic dependence on China.
From Border Disputes to Economic Confrontation
Following the military clashes along the border in 2020, anti-China sentiment within India rose rapidly. The Indian government responded with a succession of economic countermeasures. The most emblematic example was the ban on hundreds of Chinese mobile apps, including TikTok and WeChat. The government stated that these apps were "engaged in activities prejudicial to sovereignty and integrity of India, defence of India, security of state and public order," foregrounding data security concerns.
On foreign direct investment (FDI), India amended its FDI policy to require prior government approval for investments from "neighboring countries" — effectively targeting China. The barriers for Chinese companies to invest in or acquire Indian companies rose dramatically.
Import Restrictions Targeting Specific Product Categories
India's wariness toward China has also manifested in concrete import restriction measures for specific product categories. In August 2023, India introduced an import licensing system requiring prior approval for IT hardware products such as laptops, tablets, and servers.
In the steel industry, concerns about the impact of cheap Chinese imports on the domestic market have led to moves to impose safeguard tariffs on certain steel products. Behind these measures lies an intent to reduce India's enormous trade deficit with China, which runs to approximately $100 billion annually.
| Type of regulation | Main content and target |
|---|---|
| App ban | Approximately 300 Chinese apps including TikTok and WeChat banned (data security concerns) |
| Investment controls (FDI) | Prior government approval required for direct investment from neighboring countries (primarily China) |
| Import licensing system | Approval required to import IT hardware products such as laptops, tablets, and servers |
| Safeguard tariffs | Additional tariffs imposed on specific imports (e.g., steel products) to protect domestic industries |
Impact and Business Opportunities for Japanese Companies
India's "de-China" movement presents both risk and opportunity for Japanese companies.
The risk: products incorporating Chinese-made components may be caught by new import restrictions. The opportunity: as India seeks alternatives to Chinese products, demand is rising for Japanese goods — which carry a reputation for quality. Reading the geopolitical context behind regulatory developments is critically important for long-term business strategy.
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Summary — Mastering the Complex Regulatory Sea to Capture the Indian Market
This article has organized the three regulatory pillars for exports to India: "Mandatory BIS Certification," "Cybersecurity and Telecommunications Regulations," and "China-Related Regulations."
These regulations may feel like imposing walls at first glance. The reality is that compliance demands significant cost and time, and many companies are struggling with this. But the tightening of these regulations is also a reflection of India's ambition to upgrade its industrial structure and transform itself into a more mature economic power.
The ability to accurately interpret regulatory developments and incorporate them into corporate strategy — "regulatory adaptability" — is becoming a new source of competitive advantage in the Indian market. India is certainly not an easy market to navigate. But beyond it lies a consumer market of more than 1.4 billion people and limitless possibility.
References
- JETRO. (2024, March 18). BIS (Bureau of Indian Standards) Mandatory Certification: Growing Product Coverage and Its Background. https://www.jetro.go.jp/biz/areareports/2024/bfb3ca645fe4ef69.html
- Japan Research Institute. (2025, December 8). Will the Tightening of BIS (Bureau of Indian Standards) Regulations Accelerate "Make in India"?. https://www.jri.co.jp/file/report/researchfocus/pdf/16309.pdf
- JETRO. (2026, January 1). [India] Overview of the Mandatory Certification System (BIS Certification). https://www.jetro.go.jp/biz/areareports/special/2026/0101/764605fe93cd84e6.html
- JETRO. Issues and Requests Related to Trade and Investment in India (FY2024).
- PwC. Cybersecurity Laws and Policy Trends in India. https://www.pwc.com/jp/ja/knowledge/column/awareness-cyber-security/cybersecurity-laws-and-policy-trends-in.html
- TÜV SÜD. India - Country Certification. https://www.tuvsud.com/ja-jp/services/global-market-access/india
- CERT-In. (2022, April 28). Directions under sub-section (6) of section 70B of the Information Technology Act, 2000.
- JETRO. (2023, August 18). Digital Personal Data Protection Act Enacted. https://www.jetro.go.jp/biznews/2023/08/c885e3f569f4916c.html
- Reuters. (2024, October 21). India's clampdown on Chinese products and investment. https://www.reuters.com/business/indias-clampdown-chinese-products-investment-2024-10-21/
- The New York Times. (2020, June 29). India Bans Nearly 60 Chinese Apps, Including TikTok and WeChat. https://www.nytimes.com/2020/06/29/world/asia/tik-tok-banned-india-china.html
- METI. Unfair Trade Report 2025, Chapter 9: India. https://www.meti.go.jp/shingikai/sankoshin/tsusho_boeki/fukosei_boeki/report_2025/pdf/2025_01_09.pdf
- Reuters. (2025, August 19). India Government Recommends Safeguard Tariff on Steel Products for 3 Years. https://jp.reuters.com/markets/commodities/BKBSFOBTXNLF5MDNMONW4PDIAE-2025-08-19/
- Ministry of Finance. (2025, November). Overseas Watcher No. 251. https://www.mof.go.jp/public_relations/finance/2025011/202511h.html