Amazon has launched its first production line in India in partnership with Cloud Network Technology owned by Foxconn, a subsidiary of India-based Technology Company in Taiwan.
This partnership is part of a concerted effort by the Indian government, which has launched a campaign to encourage companies to invest in the Indian economy to avoid roadblocks, such as high import and competitive taxes on the country's competitive and growing economy. The Indian government has called its campaign to promote local investment and growth of Indian businesses "Aatmanirbhar Bharat," translated as "Independent India" and the cornerstone of Prime Minister Narendra Modi's economic policy since its official launch last year.
According to Amazon, the Chennai line will be able to produce hundreds of thousands of devices each year, starting with the Fire TV line of streaming devices. The company says it will "continue to monitor the growth of additional markets/cities depending on domestic demand." The announcement comes a year after Amazon said it would start investing around US$ 1 billion in local Indian businesses. "Amazon is committed to working with the Indian government to advance the vision of Aatmanirbhar Bharat," Amit Agarwal, Amazon India's vice president, said in a statement. "We are committed to investing US$ 1 billion in small and medium enterprises, helping Indian businesses to sell globally thus providing US$ 10 billion to collect exports, and create another 1 million jobs by 2025."
Amazon's heavy investment in India is another proof that the country's increasing importance as a key destination for Western consumer electronics and a manufacturing facility that can compete with China and other fast-growing regions. It is also an indication that the implementation of Modi’s foreign and economic policy translates into a successful foreign investment, as Amazon, seems to prefer to create local jobs and work with established manufacturing partners rather than meet potential limitations of Indian customers.