Foxconn, the world's largest electronics assembly manufacturer, said that India would be the next IT hub for it while expressing a desire to open factories in all states in the spirit of the 'Make in India' initiative. Terry Gou, chairman of Taiwanese firm Foxconn, said, "We want to expand our base after setting it up in Pune. The Maharashtra government had encouraged us to come to India and invest in the state."

"The plant in Pune will be dedicated to production, innovation and research and development," Gou said. "We are not only going to make things here but we are looking at bringing the whole ecosystem here," Gou had said earlier. "We are also looking for local partners in the country and have visited plants of Tata Sons, TCS and Shapoorji Pallonji," Gou said, as he reiterated his partnership with Adani.

Gou said Foxconn, the trade name for Hon Hai Precision Industry Co Ltd which also counts Blackberry, Xiaomi and Amazon as clients, is looking for local partners for the facility in the western Indian state. India will help Foxconn to mitigate the accelerating wage inflation in China, where it makes the majority of iPhones and base production sites closer to markets where its key clients want to grow. This will be a big blow to China.

Gou had said in May that Foxconn is aiming to develop 10-12 facilities in India, including factories and data centres, by 2020. Local businessmen are expecting that as Foxconn and other companies invest in the country, suppliers will follow.

Maharashtra chief minister Devendra Fadnavis has announced at an event that his government has signed a memorandum of understanding with Foxconn to set up the biggest manufacturing plant in Pune which would see an investment of $5 billion, creating 50,000 jobs. The facility would be spread over 1,500 acres.

Fadnavis said when Foxconn starts manufacturing facilities in India, the pressure of electronic imports will be reduced, giving a boost to the current account deficit of the country.

By Premji