New Delhi: Foxconn, a major supplier for Apple, has announced plans to invest $500 million in Telangana, a southern state in India. This investment will be used to establish new manufacturing plants, which is expected to generate 25,000 jobs in the first phase, according to the state’s IT Minister, K. T. Rama Rao.
The move by Foxconn to set up operations in India comes amid Apple’s efforts to shift its production away from China, where the COVID-19 pandemic has led to disruptions in the manufacturing of new iPhones and other devices. In addition to this, tensions between Beijing and Washington have also forced Apple to look for alternatives.
In March, it was reported that Foxconn had won an order from Apple to manufacture AirPods, and was planning to establish a factory in India to produce the products. The investment in Telangana is seen as a part of this larger plan by Foxconn to expand its operations in India and capitalize on the country’s growing demand for electronics.
This is not the first time that Foxconn has invested in India. In March, the company received approval from the Karnataka government for a $968 million investment in the state. The investment is expected to generate 13,000 jobs and will be used to manufacture products for clients such as Apple, Amazon, and Xiaomi.
The decision by Foxconn to invest in India is significant as it could help the country emerge as a major hub for electronics manufacturing, especially with the ongoing trade tensions between the US and China. This is good news for India, which is looking to attract more foreign investment and create jobs.
The Indian government has also been taking steps to boost the country’s electronics manufacturing sector, with initiatives such as the Production Linked Incentive (PLI) scheme, which offers incentives to companies for manufacturing in India. This has already led to several major companies, including Samsung and Apple, announcing plans to set up operations in the country.
The PLI the scheme is aimed at increasing the production of electronics in the country and reducing India’s dependence on imports. The government is targeting to increase the production of electronics in the country to $400 billion by 2025. In
In addition to this, the Indian government is also looking to improve the country’s infrastructure and ease of doing business to make it more attractive to foreign investors. This includes reforms in areas such as labor laws, land acquisition, and taxation.
Overall, The investment by Foxconn in Telangana is a positive development for India’s electronics manufacturing sector. The move is expected to create jobs and boost the country’s economy, while also strengthening its position as a key player in the global electronics market.