FDI In Electronic Systems Sectors
The fast-growing electronics market in India is backed by rapid urbanization and increased incomes. Digitalization has led to increased demand for high-end technology devices, escalating the consumption of electronic devices.
- 100% Foreign Direct Investment (FDI) in the electronic systems sector is allowed via the automatic route and is subject to all applicable regulations and laws.
- In case of electronics items for defence, FDI up to 49% is allowed under automatic route, whereas anything above 49% is allowed through the government approval.
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, an increase cash flow and other resources that will help discover this potential to the fullest.