Is Foxconn Making a Major Investment in India as Tech Giants Shift Supply Chains?
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Synopsis
Foxconn's recent $2.2 billion investment in India highlights the country's growing importance in global manufacturing. As tech giants move away from China, India's friendly policies and initiatives like 'Make in India' offer a promising landscape for foreign investments. Discover how this shift is reshaping the tech industry.
Key Takeaways
- Foxconn's investment totals $2.2 billion.
- India's FDI inflows have exceeded $500 billion from 2014 to 2024.
- Make in India and PLI schemes are major drivers of investment.
- Smartphone exports have reached $21 billion due to local assembly.
- Manufacturing FDI grew by 18 percent in FY 2024-25.
New Delhi, June 26 (NationPress) The Taiwanese behemoth Hon Hai Precision Industry Co Ltd, widely recognized as Foxconn, has secured the regulatory approval from the government for a substantial $2.2 billion investment in India and the United States. As a result, New Delhi’s role on the global manufacturing landscape is increasingly prominent, with tech leaders striving to diversify their supply chains and gradually distancing themselves from China.
This shift is facilitated by favorable government policies and effective initiatives such as Make in India and the Production Linked Incentive (PLI) scheme, which have proven transformative.
Foxconn has received the green light for two major investment projects, amounting to over $2.2 billion in India and the US. According to a report from Focus Taiwan, the Department of Investment Review under the Ministry of Economic Affairs (MOEA) has approved this plan for the electronics manufacturing giant.
The Department has sanctioned a proposal worth $1.49 billion aimed at bolstering capital in Foxconn Singapore Pte Ltd, a subsidiary of the company.
This Singapore-based entity will subsequently invest these funds into Yuzhan Technology (India) Pvt Ltd, another branch of Foxconn operating in India. The prominent Apple iPhone supplier has already committed $1.48 billion (approximately Rs 12,800 crore) to its operations in India, where it is establishing a manufacturing facility in Sriperumbudur for assembling smartphone display modules.
Industry analysts note that India has attracted over $500 billion in FDI equity inflows from 2014 to 2024, more than doubling the $208 billion obtained in the previous decade.
Significantly, $300 billion of this influx occurred between 2019 and 2024, highlighting a rapid growth trend, as stated by Sanjay Nayar, President of the prominent industry chamber Assocham.
This increase is largely credited to groundbreaking reforms like Make in India, Digital India, and the Production Linked Incentive (PLI) schemes, which have improved the business environment and positioned India as a center for clean technology and sustainable development, as Nayar discussed in a media article.
Back in 2014, 75–80 percent of India's smartphones were imported. However, due to the PLI scheme, global leaders like Apple, through Foxconn and Wistron, are now assembling iPhones in India. Smartphone exports have skyrocketed to $21 billion.
India is also emerging as a hotspot for manufacturing FDI, which saw an 18 percent increase in FY 2024–25, reaching $19.04 billion compared to $16.12 billion in FY 2023–24. Among the countries of origin, Singapore led with a 30 percent share, followed by Mauritius at 17 percent, and the United States at 11 percent, as per the ministry's data.
Point of View
It is evident that India's strategic policies have attracted substantial foreign investments, particularly from major players like Foxconn. This shift emphasizes India's potential as a manufacturing hub, promoting sustainable growth while creating job opportunities. Our support for initiatives like Make in India aligns with our commitment to fostering economic development.
NationPress
26/06/2025
Frequently Asked Questions
What is the significance of Foxconn's investment in India?
Foxconn's $2.2 billion investment is crucial as it highlights India's growing role in global manufacturing, particularly as companies look to diversify their supply chains away from China.
How has India positioned itself as an attractive destination for foreign investments?
India's favorable government policies, such as the Make in India initiative and the PLI scheme, have significantly improved the ease of doing business, making it a prime location for foreign investments.
What impact will Foxconn's investment have on the Indian economy?
This investment is expected to create jobs, boost local manufacturing capabilities, and enhance India's status as a hub for technology and innovation in the global market.
