Huawei, ZTE consider local manufacturing in India

Both Huawei and ZTE are evaluating plans to establish local manufacturing facilities in India to avoid the 20% tariff imposed on the import of telecommunications equipment.

ZTE is carefully evaluating the feasibility of local manufacturing in India, including of mobile devices, the company’s president of global sales Xiao Ming told.

If the government offers enough incentives to support a cost advantage, ZTE would love to shift many of its manufacturing factories in India.

Meanwhile Huawei is progressing a plan to resume Indian manufacturing of telecom equipment and enterprise products, the report states.

Huawei ceased production from its Indian facilities last year due in part to low demand, but the company is evaluating establishing a new plant for its carrier business and enterprise as a result of the tariffs.

Meanwhile Ericsson, which already has manufacturing facilities in India, plans to expand these capabilities to commence exports of locally-manufactured equipment to more countries.

Nokia also manufactures equipment in India, and has developed a local supply chain for components to minimize the 10% duty on imports of components to be manufactured locally.