The move is instigated by the accelerating wage inflation in China, where most of Foxconn’s factories are located, and to set up base closer to markets where its customers want to grow.
While the Taiwanese contract manufacturer declined to comment, Subhash Desai, Industries Minister of Maharashtra, said that the company is sending a delegation of officers to scout for locations in a month’s time.
Apparently, Foxconn is aiming to set up 10-12 facilities in India by 2020, including factories and data centres. Desai added that Foxconn was looking to manufacture Apple’s iPhone, iPad and iPod devices in India for both domestic as well as international sales.
Apple has been striving to grow in India, and manufacturing devices locally could significantly help the company save on taxes and excise duties. It’s devices are currently priced at a markup of 10% compared to global prices could receive a much-needed price cut, which would aid growth.
image source: Wikipedia