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The Entry of Tesla and Amazon Electronic Manufacturing to India Indicate Global faith on Indian Economy

There are two developments with regards to setting up of new manufacturing units in India in recent few days that need to be noted.

Tesla that had registered a company in Bengaluru a month ago, has now confirmed setting up of a manufacturing unit in Karnataka.

In another development, Amazon India has announced plans to start manufacturing of electronics products in India.

Why such investments are important? Of course, they come up with jobs and opportunities. Moreover, in a phase like this when the globe is battered by the pandemic and grappling with its economic consequences, companies coming to India to open their manufacturing units shows the faith they have in Indian economy.

According to reports, Karnataka Chief Minister BS Yeddyurappa announced on February 12 that the famed American company Tesla will set up its electric car manufacturing division in Karnataka.

Around the same time, Amazon announced that it is starting manufacturing of Amazon Fire TV stick from India. The announcement came after Union Minister for Electronics and IT Ravishankar Prasad held a virtual meeting with global heads of the company.

Amazon will commence its manufacturing efforts with contract manufacturer Cloud Network Technology, a subsidiary of Foxconn in Chennai, and start production later this year. The device manufacturing program will be able to produce hundreds of thousands of Fire TV Stick devices every year, catering to the demands of customers in India. The company has also stated that it will evaluate scaling capacity to additional marketplaces/cities depending on the domestic demand.

India had recently announced Production Linked Incentive scheme in the electronic manufacturing sector, and the entry of Amazon to this sector is seen as a success story.

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