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Friday, April 23, 2021

Triumph of Make In India – i-Phone maker Foxconn to leave China and invest 1 Billion USD in India

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Make In India has been a Big Bang program of Modi Government. In other words we can say that its a type of a ‘Swadeshi movement’ which covers 25 diverse sectors of the Indian economy, and primary objective is to encourage Local and Foreign Organizations to manufacture their products in India and incentivize with dedicated investments into manufacturing, which is supposed to boost the manufacturing sector in India and increase the number of skill based jobs.

Amid Corona induced slowdown the World order has been churning out and it has started impacting the Manufacturing hub of the World, aka China. World has started projecting India as an alternative among several other nations. Modi Government has sensed this opportunity and unraveled a production-linked incentive (PLI) scheme, to boost the confidence of Manufacturers.

What is Production Linked Incentive Scheme (PLI)?

If you remember, Modi Government has recently launched a Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing. It is nothing but a financial incentive to boost domestic manufacturing and attract large investments in several important electronics manufacturing domains including mobile phones, electronic components and ATMP units.

This scheme  is generating lot of interest of Smartphone makers in the country. Is is said that this scheme will help ramp up manufacturing in India and plans to bring more component manufacturing into the country, taking a step forward from assembling which most of the Smartphone makers are doing at this point of time.

Now, the good news is, the famous i-Phone maker Foxconn, which is a Taiwanese organization known for making almost 50% of i-phones in the World, has decided to give a mighty blow to China and move its production base to India.

Yeah, you heard it right.

Foxconn was amongst the companies which had applied to be amongst the government’s five “Foreign Champions” for receiving the benefits from this PLI scheme.

Foxconn is planning to move its production base from China to India, which will add 6,000 jobs at its Sriperumbur plant in Tamil Nadu. This is the plant where the company manufactures the iPhone XR, Apple’s cheaper flagship-class iPhone. Foxconn also used to manufacture the older version of the iPhone SE and some others that have been discontinued by the company globally.

Per sources, Apple has been pushing its supply chain partners to move part of their production out of China, since Donald Trump led USA government has upped their ante against Chinese Government on several issues recently.

It is significant as Foxconn Chairman, Liu Young-Way has already declared this very investment in the company’s annual general meeting last month. “We are fully pushing ahead with next steps there in India, and maybe in a few months’ time we can reveal on our website the next steps and report back to everyone. We will be investing further in India,” Liu said at the time.

Foxconn also manufactures smartphones for Xiaomi, which is currently the Market leader in India.

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