Make in India is an initiative from Government of India to encourage companies all over the world to set up their manufacturing units in India. This Initiative was launched in September 2014. Many companies has shown keen interest in this initiative and among them is Foxconn Technology. It is the world largest electronics contract manufacturer, It also produces iPhone and iPad for Apple Inc.
Terry Gou, Chairman of Foxconn, in an interview had said that the company plans to set up 10 to 12 units in India by 2020 which includes factories and data-centers.
Currently Foxconn has most of its manufacturing centers in China, where wages have more than doubled and hence it is struggling to keep its manufacturing cost low, so this is seen as a move to keep its manufacturing cost low, as India offers high skilled labour at very less cost.
Foxconn hasn’t made any public announcement about what products will it manufacture from India as company is currently feasibility studies, however Industry’s Minister of Indian state Maharashtra have said that Company is looking to manufacture iPads, iPhones and iPods in the country for both Domestic and Global sales.
It is seen as a strategic move from point of view of both Foxconn and Apple as Foxconn will be able to reduce manufacturing cost and for Apple it is a chance to increase its share in a country with second biggest population and where it has only 10% market share and trails behind its global competitor Samsung and other Chinese and local mobile handset companies primarily because they offer handset at much lesser price.
It is also seen as major victory for Government of India as this will mark return of Foxconn which was forced to shut down its operation in the country after its client Nokia closed down, However real victory will also be for consumers of India as they can get Apple products for lesser price.