Prime Minister Narendra Modi’s government, which is under pressure to bring down a jobless rate that’s the highest in 45 years, wants to attract overseas component makers and help boost the share of manufacturing in Asia’s third-largest economy to a quarter of the nation’s gross domestic product. Modi’s flagship “Make in India” programme has been foundering as poor road and port facilities deter investors.
There has been some success. Foxconn Technology Group, the largest assembler of Apple
handsets, is ramping up manufacturing of iPhones in India. It already has two factories in the southern Indian states of Andhra Pradesh and Tamil Nadu, where it makes devices for Xiaomi and Nokia. Adding more production in India would help Apple
and Foxconn diversify from China amid ongoing trade tensions with the US.
The proposals have been forwarded to the finance ministry but no decision has been taken, the official said. With the manufacturing of high-end mobile handsets for Apple and Samsung, India plans to shift its export focus to Europe and the US, the official said.