India – A New FDI Destination for Consumer Electronic Sector

India is one of the best destination for FDI

With the boost in the technological sector of the country, the consumer durable market is gaining momentum owing to the phenomenal growth in the purchasing power of the Indian middle class. There has been a significant increase in the consumption of the electronics, hence its market is also on the fleek. This increment can be estimated by the reach of Indian appliance and consumer electronics (ACE) market to Rs 2.05 lakh crore (US$ 31.48 billion) in 2017. Also, this is expected to rise steadily by 9 percent CAGR to reach Rs 3.15 lakh crore (US$ 48.37 billion) in 2022, thus portraying the status of the Indian electronic goods.

This is because of the increase in the import and demand of electronics, due to the significant rise in the customer awareness along with increasing interest in owing quality products.

Most of the consumer durable providers in the country are multinational companies which have invested in India to tap into the high potential consumer electronics market. And now with the government plans of entering the rural markets, there would be an even wider market place for the FDI investment plans. The country is now switching to technology-oriented products for their significant growth in in work and personal life.

Reasons for increase in the FDI investment in India in the consumer electronics:

• With the awareness of the customer durable market growth potential, the multi-national giants are making a firm move towards inverting in India.

• Another advantage behind increasing FDI in India for electronics goods, is to construct their manufacturing hub here for operations all over the world.

• Being one of the largest market with huge amount of youth population.

• Lower wages and big deduction in the corporate taxes by the Government of India.      

• Also, there are other factors that add up to encourage FDI in India are conductive policy measures, availability of skilled manpower with low input cost for logistics.

     Thus, India has become the centre of industrial development with increasing need of Consumer electronics.

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