Foxconn Technology Group is planning to invest up to USD 5 Bn in India, to explore the possibility of establishing a manufacturing hub parallel to China. The Indian hub will be instrumental for export to markets across Europe and the US. The investment is expected to flow in towards the end of this year.
The plan is to ramp up India operations in an exponential manner. This move gets a boost by the implementation of GST, and the imposition of a 10% customs duty on mobiles phones and key parts. The levy of the duty and the tax combined will discourage sourcing goods from China and other foreign locations. This has added value to investments in local manufacturing. The source further added,
“India is already high on our priority list, and we now plan to step up investments and business here by opening new factories and expanding the manufacturing footprint.”
A Fortune Global 500 Company, Foxconn Technology group is a Taiwanese multinational electronics contract manufacturing company. It also assembles Apple’s iPhones and iPads, and has factories in Asia, Europe, Mexico and Brazil. The company manufactures phones for Oppo, Xiaomi, Nokia, and Gionee from its existing facilities in India. Foxconn has also invested in Hike, Snapdeal, home-automation startup, WiZN Systems, etc.