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.


Industry Scenario

Nearly 70-80% of the electronic components market is imports driven. The electronics products segment contributed 82% to the overall market in 2015, and the rest comprised electronic components.

The electronic component industry was valued at USD 13.5 bn of which electro-mechanical segment had the highest share at 30%. Passive and active segments handled 27% and 22% share respectively. Remaining market of 20% was handled by the Others segment.


  • 1
    India's gaming market to reach USD 801 mn by 2022
  • 2
    Indian IoT market to reach USD 9 bn by 2020
  • 3
    Fastest growing smart phone market in Asia Pacific



1. July 2017 - China's Midea Group, plans to invest up to USD 123.5 mn in India.

2. June 2017 - Intel has announced an investment of USD 167.4 mn to expand its R&D presence and build a new state-of-the-art design house in Bangalore. The proposed facility will be located at Intel’s 44-acre campus on Sarjapur Ring Road (SRR) in Bangalore, Karnataka.

3.October 2016 Holitech Technology, a China-based LCD and touchscreen panel manufacturer, has announced plans to invest up to USD 1 bn in India by the end of 2017.

FDI Facts

1.8 bn FDI inflows (in USD) in April 2000 - September 2017

79% FDI equity inflows growth in 2014-16 viz-a-viz 2012-14

100% FDI allowed in electronics sector