In a bid to put the economy back on the growth path, the government liberalized rules for foreign direct investment (FDI) in four sectors and has allowed 100 percent FDI in contract manufacturing.
Saurabh Gupta, CFO of Dixon Technologies, and Jasbir Singh, chairman & CEO of Amber Enterprise, shared their views on the development.
“We welcome this step, especially at a time when this whole US-China trade war is happening. I think this should lead to more investments in space, more manufacturing, and more design related manufacturing. I think in times to come India has the potential to become an export hub as far as electronic sector is concerned.”
On the demand situation, Gupta said, “Demand scenario, overall, on the ground is not that good. However, we have been fortunate that we have a very strong order book.”
“The entre consumption in India is being met through direct manufacturing route. Imports are getting reduced. In fact for the first time the imports in electronics have actually contracted by almost USD 3 billion. So, that is a big positive; that will reduce the balance of payments in India and also help to generate more employment in India,” he added.
Jasbir Singh of Amber Enterprise said, “There is a lot of shift towards outsourcing and we are also seeing a positive uptake on the order book. This move of FDI, it is one step towards ease in investing as well as strengthening the Make In India and companies like us will definitely benefit from this move.”