Apples over factories - Foxconn cancels manufacturing plant in India

williamcll · January 7, 2020

In relation to the following posts:

Spoiler

Foxconn has cancelled the investment to build a electonics manufacturing plant in India, citing internal disputes as well as competition from local industries. It should be noted that some parts of Apple products are already being produced in the country.

Quote

Maharashtra Industries Minister Subhash Desai announced on Monday that the deal with Foxconn Technology Group to build an electronics manufacturing plant has been cancelled. Mr. Desai said Foxconn, the world’s largest contract manufacturer of consumer electronics, has decided not to go ahead with its commitment to invest around $5 billion (over ₹35,000 crore) in the State as proposed in an MoU signed with the government in 2015. He said the deal would not be carried out owing to Foxconn’s internal dispute with Apple Inc. “The investment commitment made by Foxconn is not coming through. It will not happen in the future as well. While they had taken up land near Navi Mumbai to set up initial facilities, it seems like multiple factors have led to their exit from Maharashtra,” he said.

Mr. Desai said the MoU with Foxconn did not have any loopholes and the State government had made all possible efforts to make sure the deal would be implemented. He said, “Prevailing global economic conditions, better performance by its competitors and internal disagreements with Apple, ensured the company could not get a head start.” Mr. Desai added, “We left no stone unturned to ensure that this MoU came through. But it was all in vain.”

Source:https://www.thehindu.com/news/cities/mumbai/5-billion-foxconn-plant-deal-scrapped-industries-minister/article30498410.ece

https://timesofindia.indiatimes.com/city/mumbai/foxconn-wont-set-up-proposed-unit-in-maharashtra-says-shiv-sena-minister/articleshow/73133222.cms

Thoughts: I think if the congress wants apple to move all its production back to the States it would take a lot of economical efforts to do it. For India however, in the end it's always better to support local businesses over foreign investors first and foremost, else they might never reach that "superpower by 20204" goal.