1. Big boost for Modi’s Make in India after GST: Foxconn could invest Rs 32000 crore

Big boost for Modi’s Make in India after GST: Foxconn could invest Rs 32000 crore

GST impact: Taiwanese multinational electronics contract manufacturing company Foxconn is reportedly planning to invest around Rs 32,000 crore.

By: | Published: July 4, 2017 11:51 AM
Foxconn India, Foxconn, Foxconn make in india, Foxconn Rs 32000 crore, Foxconn technologies, Foxconn GST, GST impact, GST, Foxconn investment, Foxconn smartphone, Foxconn factory, foxconn manufacture Foxconn has firmed up its plans to push in Rs 32000 crore in India, in order to create a parallel manufacturing hub apart from China.(Image: Reuters)

Taiwanese multinational electronics contract manufacturing company Foxconn is reportedly planning to invest around Rs 32,000 crore. A report in The Times of India said that Foxconn has firmed up its plans to push in $5 billion in the country in order to create a parallel manufacturing hub apart from China. The move is directed towards exportation in important markets like Europe and the US. The report cited a senior official of the company as saying that Foxconn will speed up their operations in India exponentially. This confidence is reportedly a result of the recent implementation of Goods and Services Tax (GST), a historical tax reform in independent India’s history. The other reason, the report cited, maybe the ‘imposition of import duty’ on phones, resulting in fewer instances of sourcing from China and other countries.

Recently, Foxconn won a bid, as a result of which it will be able to bring to India, some of the cheapest solar power in the world. This move will help Prime Minister Narendra Modi reach his ambitious clean-energy goals. India is already among the most competitive generators of solar power after establishing auctions for capacity that drew capital both from western utilities and from development banks. Meanwhile, the TOI report cited an official from the company, who said that India is “high on our priority list”. The official said that the plan is now to open new factories and “expand manufacturing footprint”.

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Recently it came to light that Foxconn is likely to put up a manufacturing base in the special economic zone (SEZ) of Jawaharlal Nehru Port Trust (JNPT). The company already has four units at Sri City in Andhra Pradesh. “Foxconn has sought 13 acres of land at the SEZ land in JNPT, which has already identified the area and marked it. The Maharashtra chief minister called me, saying that they want to make a huge investment there,” shipping and road transport minister Nitin Gadkari had said. Foxconn manufactures phones for companies such as InFocus, Oppo, Xiaomi, Nokia and Gionee from its existing facilities in India.

Also read | GST rollout: Did you know? Tax rate in India highest in the world

The Taiwanese company had plans to build as many as 12 factories in India by 2020 to manufacture LED TVs, batteries and other electronics products. It has been looking at potential sites in Gujarat, Karnataka, Andhra Pradesh and Maharashtra. Gadkari, however, said many other companies have applied for space in the JNPT SEZ, but details of these were not immediately known. JNPT is one of the 12 major ports in India and handles over 40% of Indian volumes. Last fiscal, it made a Rs 1,300-crore profit.

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