The Government is driving forward reforms in IT and electronics manufacturing sector through major initiatives like ‘Make in India’ and by creating favourable policies to enable an investor friendly environment.
The Electronic System Design & Manufacturing (ESDM) sector offers investors a wealth of opportunities for growth and is among the top five sectors in India attracting highest FDI. As the demand for high-end products rises in the domestic market, the Indian ESDM sector is projected to grow at a CAGR of 24% from USD 70 billion in 2014 to USD 400 billion by 2020. With a target of ‘Net Zero Imports’ by 2020, the Government has embarked on several initiatives to promote manufacturing in the country. In FY 2014-15, approximately 1.9 lakh crore of electronics products were manufactured indigenously. Attracting FDI 100% FDI under automatic route is permitted in the manufacturing of electronic items. Total FDI Inflows in Electronics and Computer Software & Hardware sector grew by 155.5% in FY 2015-16 to USD 6.1 billion from USD 2.4 billion in FY 2014-15.
SI No
Sub Sector
Apr 2014 -Mar 2015
(USD million)
Apr 2015-Mar 2016
1
Computer Software & Hardware
2296.04
5904.36
2
Electronics
96.84
208.39
Total
2392.88
6112.75
Listof Foreign investments in Indian Companies in Electronics Sector (Top investments in the last 2 years)
Foreign Collaborator
Country
Indian Company
FDI (USD Millions)
Videocon Mauritius Energy Ltd
Mauritius
Millennium Appliances India Ltd(USD 30.82Million), Sky Appliances Ltd (USD 35.4), Grand Electronic Pvt Ltd(USD 6.91 Million)
73.1
Mastercard Singapore Holding Pte Ltd
Singapore
Electracard Services Pvt Ltd
50.02
Harman Industries Holding Mauritius Ltd
Harman International (India) Pvt Ltd
33.45
Haier Singapore Investment Holding Pte.
Haier Appliances India Pvt Ltd
14.91
JMTC FZCO
UAE
Veto Electropowers India Pvt Ltd
8.1
Vishay Precision Asia Investments Pte Lt
Vishay Precision Transducers India Pvt Ltd
6.66
Dong Kwang Precision Co Ltd
South Korea
Dongkwang Precision India Pvt Ltd
6.29
Sankyo Buhin Co. Ltd
Japan
Sanac India Pvt Ltd
4.87
Delta Energy Systems (Singapore) Pte Ltd
Delta India Electronic Pvt Ltd
4.84
Tyco Electronics Singapore Pte Ltd
Te Connectivity India Pvt Ltd
4.43
Foxconn Singapore Pte Ltd
Foxconn Technology India Development PrivateLtd
2.98
Circuit Makers (S) Pte Ltd
Cipsa Tec India Pvt Ltd
2.91
Abdul Rahman Ali Al-khudair Holding Comp
Saudi Arabia
Omya Healthcare Ltd
2.69
Norma Group Asia Pacific Holding Pte Ltd
Norma Group Products Pvt Ltd
2.49
Elentec Co. Ltd
Elentec India Pvt Ltd
1.98
SDP Telecom Inc.
Canada
Sdp Telecom India Pvt Ltd
1.95
Telesystem Participation Llc
U.S.A
Tele System Electronic India Pvt Ltd
1.79
Eurocircuits N.V.
Belgium
Eurocircuits India Ltd
1.71
Ripe Korea Co. Ltd
1.69