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India attractive as an export hub

SECTOR FOCUS/Finance, 2017/2018, October 2017
A number of international companies are stepping in to take advantage of India’s location as a promising export hub.

Foxconn eyes exports from India

The world’s largest contract manufacturer, Foxconn, plans to begin exports to the Middle East and African countries from India the end of this year.

The Taiwan-headquartered phone and electronics maker is stepping up an expansion of its manufacturing facility in Sri City, Andhra Pradesh, while scouting for more locations including Tirupati in the same state, besides states of Tamil Nadu, Maharashtra and Delhi NCR.

Over the next year or so, Foxconn is aiming for its suppliers to set up base here so they can feed into the local production chain which it will create for exports, Indian media reports.

Foxconn, which makes iPhones for Apple out of China, is also reportedly set to accelerate discussions with several component suppliers over next couple of months, now that the Indian government has assured protection to local manufacturing through basic customs duty of 10 per cent and created a roadmap for local production of components coupled with tax incentives and benefits.

Foxconn has so far invested around $600 million in the India market.