Foxconn, the world’s largest contract manufacturer for electronics, has firmed up plans to invest up to $5 billion (around Rs 320 billion) in India as it looks to make the country a parallel manufacturing hub to China for export to key markets across Europe and the US.
Foxconn chairman & CEO Terry Gou has already committed more investments in India during his visit here, and has also spoken about partnerships with local players and industrial groups.
The decision to impose an import duty on phones and other key components such as chargers and batteries is a “confidence booster“ for the company and its supplier partners.
After the government introduced tax benefits for companies making phones locally around two years ago, there has been an increase in domestic sourcing against import of fully-built units from China.
However, there was uncertainty in the industry on whether the differential -around 10 percent benefits for local manufacturing -would be maintained in the GST era. On Saturday , the government imposed a 10 percent customs duty on phones and key parts such as chargers, headsets, batteries and USB cab les, a move that the industry believes will spur investments in local manufacturing.
The expansion will create massive employment opportunities in the country , the official said, adding that the company is in serious talks with many state governments. States such as Maharashtra, Uttar Pradesh, Tamil Nadu, Haryana and Telangana are on the radar. A large part of the investments could be directed towards setting up of a display fab unit.
By Baishakhi Dutta
