Foxconn bets big on India now
As Taiwanese giant Hon Hai Precision Industry Co Ltd (known as Foxconn) gets its government's regulatory nod for $2.2-billion investment in India and the US, the New Delhi's position on the global manufacturing map has become more visible, with tech giants aiming to diversify their supply chains and slowly moving away from China.
This is possible due to friendly government policies and robust initiatives line 'Make in India' and PLI scheme which have become a game-changer.
Taiwanese electronics giant Foxconn received regulatory approval for two significant investment plans, totalling over $2.2 billion in India and the US. As per a report by Focus Taiwan, the Department of Investment Review under the Ministry of Economic Affairs (MOEA) approved the plan for the electronics manufacturing giant.
The Department cleared a $1.49-billion investment proposal aimed at increasing capital in Foxconn Singapore Pte Ltd, a subsidiary of the company.
This Singapore-based unit will, in turn, invest the funds into Yuzhan Technology (India) Pvt Ltd, another entity under Foxconn's subsidy operating in India. The key Apple iPhone supplier has invested $1.48 billion (about Rs 12,800 crore) in its India operations. It is currently setting up a manufacturing plant in Sriperumbudur to assemble smartphone display modules.
According to industry experts, India attracted over $500 billion in FDI equity inflows between 2014 and 2024 which is more than double the $208 billion received in the preceding decade. Notably, $300 billion of this came between 2019 and 2024 alone, underscoring an accelerated growth trajectory, according to Sanjay Nayar, President of leading industry chamber Assocham.
This surge is attributed to transformative reforms like Make in India, Digital India, and the Production Linked Incentive (PLI) schemes, which have not only enhanced the ease of doing business but also positioned India as a hub for clean technology and sustainable growth, Nayar wrote in a media article.
About 75–80 per cent of India's smartphones were imported in 2014. Now, due to the PLI scheme, global major like Apple, through Foxconn and Wistron, are now assembling iPhones in India. Smartphone exports have surged to $21 billion.
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