India’s global manufacturing hub ambition gets strong investment boost
From Apple to Amazon, some of the top global companies, especially those in the US, have set their sights on India as the country expands rapidly across various sectors.
India’s goal of becoming a global manufacturing hub is gathering momentum as more global companies continue to invest in the country. The flurry of investments is not only good news for the Indian economy but also for the ruling government ahead of the crucial general elections next year.
From Apple to Amazon, some of the top global companies, especially those in the US, have set their sights on India as the country expands rapidly across various sectors. Global companies are also relying on India to reduce their dependence on China, following the disruptions they faced last year.
From Apple to Amazon
On Tuesday, Amazon Inc’s cloud computing division, Amazon Web Services, became the latest company to invest in India. The company has planned to invest $13 billion (over Rs 1 lakh crore) in India by 2030 to build its cloud infrastructure and create thousands of jobs.
US technology giant Apple, the most valuable company in the world in terms of market value, recently opened its first physical retail stores in India, one in Mumbai and another in New Delhi.
Apple CEO Tim Cook personally flew down to India for the inauguration of the stores and said Apple “was committed to growing and investing across the country”.
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The move is in line with Apple’s aim to make India a bigger manufacturing base after relying on China for years.
The company has started manufacturing several products in India through its contract electronics makes Foxconn, Wistron Corp and Pegatron Corp.
Speaking of contract electronic manufacturers, Taiwanese giant Foxconn is investing $500 million in India to set up a manufacturing plant in Telangana and almost $968 million in Karnataka. These investments are expected to create more than 70,000 jobs, according to government officials.
In addition, the Apple supplier also has plans to build a factory in India, focused on manufacturing AirPods, which are Apple’s wireless earphones.
US networking equipment maker Cisco Systems is another company that will begin manufacturing in India as it looks to diversify its global supply chain. It has set a target of $1 billion in production and exports from India over the next few years.
Last but not least, US retail giant Walmart also has plans to expand its business in India. Walmart CEO Doug McMillon recently met Prime Minister Narendra Modi and reiterated that the company planned exports from India worth $10 billion a year by 2027.
While these are just a few big companies that have shared their plans to make in India, several other companies from various sectors are expected to follow suit in their pursuit to grab a bigger share of India’s rapidly expanding economy.