Foreign individuals, companies, foreign institutional investors, foreign venture capitalists, foreign trust, private equity fund, pension/provident fund, sovereign wealth fund, partnership/proprietorship firm, financial institutions, non-resident Indians/person of Indian origin, etc. can invest in India, either on their own or in the form of a joint venture. 100% FDI is allowed under the automatic route in the ESDM sector. However, in defense electronics, subject to industrial license, FDI up to 100% is allowed. (Upto 49% under the automatic approval route and above 49% is under Government route on case to case basis, wherever it is likely to result in access to modern and ‘state-of-art’ technology in the country). The Government has also approved 100% FDI in medical devices via automatic route. There will be no need for Foreign Investment Promotion Board’s permission to acquire an existing company or set up a new manufacturing unit in the medical devices sector. The investor will need to comply with the reporting requirements of the RBI and comply with all other relevant central & state laws & regulations.

Foreign individuals, companies, foreign institutional investors, foreign venture capitalists, foreign trust, private equity fund, pension/provident fund, sovereign wealth fund, partnership/proprietorship firm, financial institutions, non-resident Indians/person of Indian origin, etc. can invest in India, either on their own or in the form of a joint venture. 100% FDI is allowed under the automatic route in the ESDM sector. However, in defense electronics, subject to industrial license, FDI up to 100% is allowed (Upto 49% under the automatic approval route and above 49% is under Government route on case to case basis, wherever it is likely to result in access to modern and ‘state-of-art’ technology in the country). The Government has also approved 100% FDI in medical devices via automatic route. There will be no need for Foreign Investment Promotion Board’s permission to acquire an existing company or set up a new manufacturing unit in the medical devices sector. The investor will need to comply with the reporting requirements of the RBI and comply with all other relevant central & state laws & regulations.

The MSIPS is applicable to investments in new ESDM units, expansion of capacity/modernization
and diversification of existing ESDM units. ESDM unit shall mean a unit engaged in design and 
manufacturing of the electronics and nano-electronics and their accessories. It includes all stages of
value addition and also includes electronics manufacturing services.
Expansion of existing unit would mean increase in the value of fixed capital investment in plant &
machinery of an ESDM unit by not less than 25% for the purpose of expansion of
capacity/modernization and diversification.

Government of India has notified the national policy on electronics in 2012. Some of its main
objectives include:
1) Achieve Net Zero Import by 2020.
2) Achieve a turnover of $ 400 billion by 2020 with investments of $ 100 billion.
3) Generating 28 million jobs.
4) Build strong supply chain of raw materials, parts and electronic components.

Electronics Development Fund Policy provides a framework to set up an Electronics Development Fund (EDF) as a Fund of Funds which will foster R&D and innovation in technology sectors like electronics, IT and nano-electronics. EDF will support Venture Funds and Angel Funds, which will be professionally managed and are dedicated to these sectors.