Amazon’s first foray into producing devices in India begins later this year, the US ecommerce company announced this month, saying the move reflects its “commitment” to New Delhi’s efforts to build a more independent supply chain.
Amazon will produce Fire TV Stick devices in the country. Manufacturing will be handled by a subsidiary of Taiwan’s Hon Hai Precision Industry — the iPhone assembler better known as Foxconn — at a plant in Chennai.
The facility “will be able to produce hundreds of thousands” of devices a year, according to an Amazon statement.
The decision was announced by Ravi Shankar Prasad, India’s minister for electronics and information technology, and Amit Agarwal, head of Amazon’s India operations, in an online meeting.
“We welcome Amazon’s decision to set up a manufacturing line in Chennai, as it will enhance domestic production capacities, and create jobs as well,” Prasad said.
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The move fits India’s campaign for greater “self-reliance” following the disruption caused by coronavirus and New Delhi’s freezing out of Chinese companies in response to a border clash.
The government formed a new subsidy programme, among other measures, to promote local manufacturing and new investment.
In Amazon’s statement, Agarwal noted the company’s pledge to invest $1bn in India to digitise small businesses and help them sell worldwide, enable $10bn in exports and create 1m jobs by 2025.
A version of this article was first published by Nikkei Asia on February 17 2021. ©2021 Nikkei Inc. All rights reserved