Foxconn to set up manufacturing hub in India
In this article (5)
Foxconn will invest up to 320 billion rupees ($4.9 billion) to establish more manufacturing capabilities in India, in response to the nation’s recent legislative changes designed to incentivize local manufacturing.
The company plans to exponentially scale up its Indian operations, opening new factories and expanding its manufacturing footprint.
India has just announced a 10% customs duty on the importation on phones and accessories in a bid to encourage local manufacturing. The move comes two years after he introduction of tax benefits for companies making handsets locally.
It is currently unclear how the recently-announced GST of up to 18% of the cost of transactions will influence the benefits for local manufacturing.
According to the report, India currently has the capacity to produce up to four million devices per month, manufacturing phones for companies including Xiaomi, Oppo, InFocus, Nokia and Gionee.
Questions & Answers
Q.What is the primary reason for Foxconn's increased investment in India?
What is the primary reason for Foxconn's increased investment in India?
Foxconn is increasing its investment in India due to recent legislative changes aimed at incentivising local manufacturing. The company plans to open new factories and expand its manufacturing footprint in the country as a direct response to these policies.
Q.How much customs duty has India recently imposed on imported phones and accessories?
How much customs duty has India recently imposed on imported phones and accessories?
India has recently imposed a 10% customs duty on the importation of phones and accessories. This measure is intended to encourage local manufacturing within the country, building on previous tax benefits for handset production.
Q.Which specific companies currently have their phones manufactured in India?
Which specific companies currently have their phones manufactured in India?
Companies such as Xiaomi, Oppo, InFocus, Nokia, and Gionee currently have their phones manufactured in India. The country possesses the capacity to produce up to four million devices each month for these and other brands.
Q.Will the new GST affect the benefits for local manufacturing?
Will the new GST affect the benefits for local manufacturing?
It is currently unclear how the recently announced Goods and Services Tax (GST) of up to 18% on transaction costs will influence the benefits intended for local manufacturing. Its impact on the incentives remains to be seen.
Reader pulse
Is India's push for local electronics manufacturing sustainable?
20,019 votes so far