By India Today Business DeskTaiwanese contact electronics manufacturing giant Foxconn Technology Group (Hon Hai Precision Industry Co. Ltd) will be opening its manufacturing facility in Telangana, according to a statement issued by the Chief Minister’s Office (CMO).
The statement issued by the CMO stated that Foxconn Chairman Young Liu, in a letter addressed to Telangana Chief Minister K Chandrashekhar Rao “explicitly confirmed the commitment” of the company in setting up a manufacturing facility in Kongara Kalan village, located in Ranga Reddy district.
Liu also sought the support of the Telangana team in operationalizing the Kongara Kalan Park as early as possible. “This amply clears the doubts, as raised in a certain section of the press, that the world-famous Foxconn company was in a dilemma as to whether to set up the manufacturing facility in Telangana or not,” the CMO said.
The development of the Foxconn manufacturing plant in Telangana will provide major benefits for the state, ranging from job creation to stronger revenue generation.
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How will Telangana benefit from Foxconn plant?
The Foxconn manufacturing plant will provide major economic and political benefits to the Telangana government. Firstly, setting up the plant will lead to the creation of over 1 lakh jobs.
The plant will also promote Telangana as an important electronics manufacturing hub in the country, providing it with a strategic advantage in terms of fetching global investments in future. In addition, Foxconn’s manufacturing plant will also boost the state’s economic growth, both in terms of revenue generation and tax collection.
The manufacturing plant would also open the doors for advanced R&D, which could lead to the development of new technologies and innovations. The plant will also support a wide network of suppliers in the state, helping create additional job opportunities.
Most importantly, a company of Foxconn’s stature opening a manufacturing plant in the state highlights the state’s industry-friendly policies, which could attract big investments from other global brands.
It is important to note that the development comes after Foxconn denied setting up an iPhone manufacturing plant in the outskirts of Bengaluru, following Karnataka Chief Minister Basavaraj Bommai’s announcement that an agreement had been signed with Foxconn for the same.
Not only does this come as a political blow to the Karnataka government ahead of assembly elections in May, but the state also loses the economic benefits of having a Foxconn plant.
Emanuel Schmitt
Kayleigh Rogahn
Keven Bayer