Soon, you may be able to flaunt a 'Made in India' iPhone manufactured in Maharashtra with the state government keen on attracting manufacturing companies such as Foxconn from China. This may result in India's first plant manufacturing the premium smart phone being set up in the state.
Chief minister Devendra Fadnavis, who was part of Prime Minister Narendra Modi's delegation during the latter's recent China tour, visited Foxconn's manufacturing facility in the Henan province. The unit employs around 3 lakh people and manufactures iPhone models, including the latest iPhone 6.
Fadnavis said the state government was in talks to get the manufacturing facility set up in Maharashtra.
Fadnavis told dna that a possible site for the plant, which would need a "huge investment" could be either Pune or Aurangabad.
"India has the world's largest number of cellphones but only 7% of these mobile handsets are manufactured in the country. The rest are imported," said Fadnavis, adding that a local facility would help the Taiwan-headquartered multinational, which is a major electronics contract manufacturer, gain a foothold in the domestic market and also export these handsets. He added that the company was eager to set a "complete ecosystem with (even) suppliers and not just an assembly line." This translates into a major employment opportunity for people.
The state is in talks with the company to resolve the problems involved and reach a "comfortable level." "Large manufacturers want a predictable regime," said Fadnavis, adding that in case the handsets manufactured at the company's facilities in China were cheaper vis-a-vis those manufactured in India, the later would have to be closed down.
"The concern (of these Chinese companies) is how the volatility of the rupee can be hedged," he noted, adding that these companies were protected in China. Moreover, Chinese or Taiwanese banks are not allowed in India for now.
The Fadnavis regime is eager to boost the manufacturing sector in Maharashtra to provide for employment opportunities and absorb the youth in the workforce. According to the state's Economic Survey for 2015-16, the manufacturing sector is growing at an average rate of 7.9% with average contribution of about 20.9% in the GSDP (gross state domestic product) in the current series.
"(Foreign) entrepreneurs are eager to come to Maharashtra... if investment relations can be established with the Chinese, then we will get a major boost for progress," said Fadnavis, adding that they were also looking at attracting manufacturers of solar panels.
"This is necessary not just for us, but also for them (China). So, this is a win-win opportunity," Fadnavis pointed out.
The chief minister referred to reports that the Chinese economy, which is second largest in the world, was beginning to slowdown.
The gradual rise in prosperity was leading to an increase in wages in China, which was once seen as the world's factory due to the strong presence of the manufacturing sector from companies across the world. Because of this gradual cost disadvantage, China is now looking at focusing on high-end technology.
Fadnavis said hence, India could attract the manufacturing sector from China and noted that this would be a "paradigm shift" from the present trade regime to an investment one.
Fadnavis said states would be able to initiate "provincial level talks" with their regional counterparts in China and added that he had met the governor of the Henan province "who was eager on economic co-operation with Maharashtra."
Maharashtra has attracted the highest number of proposals having maximum employment potential. Since August, 1991 to October, 2014, in all 18,709 industrial proposals with an investment of Rs 10,63,342 crore were approved. Out of these, 8,376 projects (44.8%) with an investment of Rs 2,54,784 crore (23.9%) with proposed employment of 10.95 lakh were commissioned and 2,115 projects with an investment of Rs 88,086 crore and proposed employment of 3.03 lakh are under execution. Of the total proposals received in the country, the state's share in number of proposals and investment is about 18% and 10% respectively
Since August 1991 to March 2012, in all 4,246 Foreign Direct Investment (FDI) projects (of 20,643 at all-India level) amounting to Rs 97,799 crore (of Rs 4,25,811 crore at all-India level) were approved. Of these, 45% were commissioned and 10% are under execution with a share of investment of 51% and 8% respectively. During 2011-12, in all 105 FDI projects with an investment of Rs 5,454 crore were approved. The United States of America and Mauritius are the two prominent countries investing in industrial sector of Maharashtra with 14% and 13% share respectively in total FDI.
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