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Electronic in India

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Today, electronics permeates vast areas of human activity. There is virtually no field where this vital branch of science and technology does not play a role. Not only has it become essential for defence, atomic energy, law and order, and communications, but it is also now an integral part of most industrial production processes.

Majority of the countries now recognized the foreign direct investment (FDI) as an important driver for the growth of the country's economy. India is in the second position for the attractiveness of FDI inflows among the Asian emerging economies. In a study (Ghayur Alam1990) with regards to the Indian electronic industry has mentioned that the industry was heavily protected since 1980. The industry produced low quality products at high price and followed inefficient production methods. Also the report of corporate catalyst India (2006) represented that prior to 1983; several efforts were made for the industrial liberalization. The government of India has implemented economic and financial reforms since 1990 (Ministry of commerce and industry, 2003). This have been developed the industrial growth followed by the entry of many new firms along with the increased reliance of foreign technologies and components.

India invited foreign firms and investors to its economy from 1991 (Agarwal et al. 2002) Over the years, FDI inflow in the country is increasing. The government of India has targeted primarily on FDI to improve the electronic sector with the fascinating advantages of the country such as well trained labours, low wage labours and an immense internal market for its wide products (Purchasing, 2005). Later the independence of 1947, the government of India has been taken initiatives and support to involve in the electronic sector both directly as a manufacturer, particular to the huge investment electronic products, and indirectly by formulating the policies for supporting and promoting the production of private sectors (Agarwal, 1986). It includes protection from imports, reservation of several items for the small scale sector (low investment), export concessions, setting up of manpower training centres and the establishment of national research and development laboratories. Nevertheless India has tremendous possibilities for fascinating the greater flow of FDI in the coming years

According to the report of Indian Brand Equity Foundation (2009), the market size of Indian electronic industry was worth US$ 21.16 billion. Indian electronic industry is nascent by global standards. The industry electronic industry consists of six different segments namely consumer electronics, strategic electronics, strategic electronics, industrial electronics, computers, communication and broadcasting equipment and electronic component (Agrawal, 1985). Corporate catalyst India (2009) stated that the consumer electronics have a large manufacturing base and with the active presence of global players, it is a quite



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