InvestorQ : How come the computer hardware space has been attracting so much of FDI flows?
Archita Jajjoo made post

How come the computer hardware space has been attracting so much of FDI flows?

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Niti Shenoi answered.
8 months ago
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Foreign direct investment or FDI in the computer software and hardware sector in India was up sharply up four-fold at $24.4 billion during the April-December period in this fiscal year. The growth becomes all the starker when you compare it with the corresponding period last year. During the year-ago period, i.e. Apr-Dec 2020, the FDI flow into the computer software and the hardware sector was just about $6.4 billion.

The huge opportunity for the computer hardware and software sector appears to have come from the accelerated digitization efforts in the last few months post the pandemic as well as the enhanced use of artificial intelligence in the midst of the WFH trend. Use of digital technologies and AI has just multiplied to maintain the same amount of control and monitoring in the WHF model. That has led to a surge in opportunities in IT.

Observers of the FDI scene are of the informed view that the hardware and the IT sector witnessed a surge in FDI flows largely on account of the electronics and digital transformation globally. Under these circumstances, it is the Indian technology firms that were the best poised to capture this trend. Clearly, investors are putting their money where they see growth, huge opportunities and inherent strengths in an India execution model.

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