Good News: Indian Electronics Industry Set to Receive $2bn Investment from Abu Dhabi Company
India is one of the largest consumers of electronics goods. Despite that, the biggest problem remains that most of what is consumed is imported from elsewhere. A recent study found out that the subcontinent imported nearly $45 billion worth of electronic items in 2016 alone. In the long run, this can get essentially worrying as the country stands a risk of trade imbalances.
However, a newly established Abu Dhabi based fund, Next Orbit Ventures (NOVF) ESDM announced that it has initiated a $2 billion fund to invest in India’s electronics and semiconductor industry. This massive investment could give a huge impetus, especially to India’s dormant semiconductor industry.
“Around $1.5 billion for the fund will be raised from the region, while the remaining $500 million has been secured from a consortium of investors involving both the Indian government and ultra-high net worth individuals,” NOVF said.
It is a well-known fact that India is yet to have a fully functional fabrication plant that can involve in the manufacturing of semiconductors. Several bureaucratic issues have turned mega companies, which wanted to open semiconductor manufacturing plants in India, away.
Now with this ginormous investment of $2 billion, all that could change. The government of India has been trying to push for indigenous manufacturing of electronic goods and components in order to tackle trade imbalances and enhance cybersecurity, and this could just be the investment that it needs to hit the ground running.