Taiwan-based giant Foxconn is to invest $1.5bn to expand its operations in India.
News of the investment, revealed in a stock exchange filing yesterday (27 November), comes as the company has significantly stepped up its plans in India.
In August, Foxconn announced $200m investment to open a components manufacturing plant in the Indian state of Tamil Nadu – an investment that could lead to the creation of 6,000 jobs.
“Foxconn’s repeated investments and expansion plans in Tamil Nadu are a testament to the state being a top choice for manufacturing in India for major companies across the world,” India’s Industries Minister TRB Rajaa commented at the time. “This is a major achievement for the state.”
In September, meanwhile, Foxconn said it would double the number of jobs in India over the next 12 months.
India has been on a path towards attracting more investors in the country, with Western companies looking to diversify their supply chains away from China but still keep a presence in the region.
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In FY 2022-23, the government in New Delhi recorded $70.97bn in foreign direct investment (FDI) inflows. That is down from $83.57bn in FY2021-22 and up from $45.15bn in 2014-15, data by Invest India, the country’s investment promotion agency, shows.
Around 15% of total FDI inflows went into the computer software and hardware industry, ranking second behind the services sector, which received 16%.
Tamil Nadu had the third-largest state economy in India in FY 2020-21, according to the Reserve State of India.
Foxconn declined to provide any further details.