ELECTRONIC SYSTEMS

FDI In Electronic Systems Sectors

The fast-growing electronics market in India is backed by rapid urbanization and increased incomes. Digitization has led to increased demand for high-end technology devices, escalating the consumption of electronic devices. Transitions in technology, such as the deployment of 5G networks and the Internet of Things, are accelerating the adoption of electronic items. Initiativeslike the 'Digital India' and 'Smart City' programs have boosted IoT demand and will usher in a new era for electrical items.

The global electronics market is projected to be worth more than $2 trillion. From 1.3 percent in 2012 to 3.6 percent in 2019, India's share of global electronics production has increased. The electronics manufacturing sector has tremendous growth potential, which is still yet to be explored. FDI in electronics in India will result in better technology, increase cash flow and other resources to help discover this potential to the fullest.

100% FDI in the electronic systems sector is allowed under the automatic route.

In electronics items for defense, FDI equity inflows in the electronics sector up to 49% are allowed under automatic route and beyond 49% through the government approval.