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Wave of Tech Investment in India joined by Apple iPhone Supplier

Pegatron, Apple's assembly partner, is its first manufacturer in India, adding to a massive influx of foreign technology investment into the country this year. In June, the government devised a $ 6.6 billion plan to attract the world's largest smartphone manufacturers, offering financial incentives and ready-to-use manufacturing groups. Pegatron is now establishing a local subsidiary and joining the Taiwanese electronics assemblers Foxconn Technology Group and Wistron, some of which are already making iPhone phones in southern India.

With a number of factories in China, Pegatron is the second largest iPhone complex and relies on Apple for more than half of its business. Like his peers, he will settle in southern India, according to someone familiar with his plans who requested anonymity. Foxconn, also known as Hon Hai, and Wistron are seeking to expand their operations in the country, and Pegatron's entry may be seen as a defensive move to protect its involvement in low-budget iPhone manufacturing, according to Matthew Kanterman of Bloomberg Intelligence.

India has seen an increase in domestic investment in recent weeks, as Google, Facebook and others have contributed nearly $ 20 billion (about Rs 1.5 crore) to Jio Platforms, the mobile internet company of billionaire Mukesh Ambani. Google has pledged to spend $ 10 billion (75 billion rupees) over the next five to seven years to accelerate the digital transformation in India, and said it plans to export $ 10 billion of products. Made in India by 2025. When Jeff Bezos visited the country in January, he said: "The twenty-first century will be the Indian century."

The country offers a large number of skilled workers, as well as an internal market with a billion mobile connections. However, only about half of them are smartphones, leaving attractive untapped potential for global brands craving growth like Apple, Samsung Electronics, Xiaomi and Oppo. For collectors such as Pegatron, exports will also be an attractive opportunity, especially at a time when trade relations between Washington and Beijing are deteriorating, making it necessary to have a diversified geographical base.

Smartphones are a focal point for the Make in India program called Prime Minister Narendra Modi. Ravi Shankar Prasad, Minister of Information Technology and Electronics, said the goal is for brands and manufacturers to move the entire supply chain to the country, not just the final assembly stage. Local media quoted Prasad as saying that India wanted not only the "groom", but the "wedding procession" as well.

Pankaj Mohandro, President of the Indian Association for Mobile Phones and Electronics, said India will become a global manufacturing center for both components and the complete assembly of smartphones and other devices. The group's 10 members are Apple, Foxconn, Google, Wistron, Oppo, and more.

"The focus is shifting from going to India to exports, and the $ 400 billion electronics industry that India is targeting by 2025 will be dominated by exports," Mohandero said by telephone from New Delhi.

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