Foxconn, Wistron subsidiaries chosen for $1B manufacturing plan in India

Credit: Apple

The plan, announced in February, is meant to bolster domestic technology production with a series of cash back incentives for manufacturers. Along with the four foreign firms, India also choose 10 local companies, including smartphone maker Lava, Reuters reported Friday.

Under the deal, the companies will receive cash back of 1% to 4% of additional sales of locally produced goods over a four-year period. The companies are expected to produce about 1.61 trillion rupees of IT hardware and create more than 36,000 jobs.

Wistron and Foxconn, whose subsidiary companies were chosen for the incentive plan, are key Apple suppliers.

Apple has previously lobbied the government for incentives in an effort to increase its product of iPad devices in India.

The Cupertino tech giant already manufacturers some devices in India, including iPhone models assembled by Wistron and Foxconn. Looking ahead, Apple is said to be preparing to shift as much as 10% of iPhone 12 production to India.

As one of the largest smartphone markets in the world, India is quickly becoming an important region for device makers. Apple has struggled to gain a foothold in the country, but has made modes to increase its presence there. It launched an online storefront in India in September 2020 and plans to open a brick-and-mortar Apple Store in Mumbai in 2021.

Manufacturing iPhones and other devices in India also helps Apple reduce its reliance on China.

The Indian government has also pushed to bolster local manufacturing in recent years. In 2020, it launched a $6.6 billion manufacturing incentive program specifically to increase domestic smartphone production.

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