Reasons to Invest

Electronic components industry in India
Growing Demand: The electronic components market in India (excluding imported PCB-Assemblies) grew by ~33% CAGR over the last 4 years and was valued at $20.8 Bn in 2018-19
Electronic components industry in India
Rising Production and Exports: The domestic production for electronic components stood at $9.9 Bn in 2018-19 of which $2.2 Bn was exported
Electronic components industry in India
Low Cost of Manufacturing and EoDB: India is the preferred investment destination for electronics manufacturing given the low of manufacturing combined with the rapid transformation in ease of doing business

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FDI Norms

100% FDI is allowed under the automatic route. Under Defence electronics, FDI up to 49% is allowed under automatic route and beyond 49% through government approval.
fdi
100%

FDI Allowed under Automatic route

Did you Know?

India received FDI inflows of $ 44.9 Bn in Computer Software and Hardware from April 2000 to March 2020. India received FDI inflows of $ 37.2 Bn in Telecommunications from April 2000 to March 2020.

Government Support

National Policy on Electronics, 2019 (NPE 2019)

The National Policy on Electronics is a policy roadmap that has been created to position India as a global hub of Electronics System Design and Manufacturing (ESDM) by encouraging and driving capabilities in the country for developing core components including chipsets, and creating an enabling environment for the industry to compete globally.
In order to position India as a global hub for ESDM and push further the vision of the National Policy on Electronics (NPE) 2019, the following three schemes were notified on April 1st, 2020.
 

Production Linked Incentive Scheme (PLI)

Seeks to boost large-scale domestic manufacturing by offering an incentive of 4-6% on incremental sales over a period of 5 years for mobile phones and specified electronic components.

A microsite containing more information on this scheme can be found here - https://www.investindia.gov.in/schemes-for-electronics-manufacturing

Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)

Incentives of 25% is offered on capital expenditure pertaining to plant & machinery, associated utilities, and technologies on a reimbursement basis.

A microsite containing more information on this scheme can be found here - https://www.investindia.gov.in/schemes-for-electronics-manufacturing

Modified Electronics Manufacturing Clusters Scheme (EMC 2.0)

Incentives of 50% of project cost (subject to ceilings) offered to enable the setting up of world-class electronics infrastructure.

A microsite containing more information on this scheme can be found here - https://www.investindia.gov.in/schemes-for-electronics-manufacturing

Phased Manufacturing Programme (PMP)

Roadmap for tariff rationalization to promote depth in manufacturing.

Public Procurement Order (PPO), 2017

PPO 2017 has been notified to encourage ‘Make In India’ and promote manufacturing and production of goods and services in India with a view to enhancing income and employment.

Electronics Development Fund (EDF)

“Fund of funds” to promote innovation, IP creation, Research & Development (R&D) and commercialization.

Major Investors

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Infrastructure Map

Product Profiles

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The domestic market for Capacitors stood at $1.01 Bn of which $0.48 Bn was catered by domestic production. Exports were valued at $0.14 Bn.
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The domestic market for Resistors stood at $0.37 Bn of which $0.12 Bn was catered by domestic production. Exports were valued at $0.04 Bn.
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All figures shown are for 2018-19
Electronic Comp

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