Apart from being a critical driver of economic growth, foreign direct investment (FDI) is a major source of non-debt financial resource for the economic development of India. Foreign companies invest in India to take advantage of relatively lower wages, special investment privileges such as tax exemptions, etc. For a country where foreign investments are being made, it also means achieving technical know-how and generating employment.
Further, the same year had witnessed a massive growth in production to the value of USD 1 billion. Hyderabad houses key global players in the MSM and Mega industries sectors, such as Nvidia, Motorola, Qualcomm, AMD, CDAC, Cypress, etc., in addition to home grown companies such as BHEL, BEL, HBL, ECIL, etc. Recently, Hyderabad has attracted investments from giants such as Apple, Micromax, etc. and has cemented its position as a promising electronics investment zone on the global map.
Market size
According to Department of Industrial Policy and Promotion (DIPP), the total FDI investments in India during April-December 2017 stood at US$ 35.94 billion, indicating that government’s effort to improve ease of doing business and relaxation in FDI norms is yielding results.
During April-December 2017, India received the maximum FDI equity inflows from Mauritius (US$ 13.35 billion), followed by Singapore (US$ 9.21 billion), Netherlands (US$ 2.38 billion), USA (US$ 1.74 billion), and Japan (US$ 1.26 billion).
The Indian government’s favourable policy regime and robust business environment have ensured that foreign capital keeps flowing into the country. The government has taken many initiatives in recent years such as relaxing FDI norms across sectors such as defence, PSU oil refineries, telecom, power exchanges, and stock exchanges, among others.
Telangana has continuously been at the forefront of electronics manufacturing in the country. The traditional entrepreneurial spirit of the locals, coupled with the access to skilled workforce and inherent supply chain advantages of the location have resulted in tremendous growth of the Electronics industry over the last two decades. Over time, a physical ecosystem has evolved with the Electronics and associated industries in and around Hyderabad. Additionally, the high quality of technical education and skilled graduates from engineering colleges across the state has served as a critical growth factor.
