Foxconn to invest $500 million, KTR says Telangana will be India's Shenzhen
Hyderabad: Telangana aspires to be the "Shenzhen of India" in the electronics manufacturing industry, with the aim of creating 15 lakh jobs and achieving a market size of $150 billion in 10 years, asserted IT and industries minister K.T. Rama Rao on Monday at the groundbreaking ceremony for Taiwanese multinational electronics giant Foxconn's manufacturing plant.
Rama Rao said that Foxconn will invest $500 million in the Kongarakalan unit and the first phase of the project would create 25,000 direct jobs. Foxconn would associate with the state government to set up a skill development centre to train youths in acquiring the skills to work in hi-tech manufacturing, he said.
Calling the event a watershed moment in Telangana's history and a historic day for the state, Rama Rao said, “I am confident that Telangana will accomplish in 20 years what China has accomplished in 30 years in making Shenzhen a global centre for technology, research, manufacturing, and so on," Rama Rao remarked.
Listing out what differentiated Telangana from the rest, Rama Rao said, "We take ourselves seriously. We mean business, we mean progress and we are a forward looking state." He vowed that the state government would provide support for creating a favourable business environment and enabling Foxconn's dream of completing the Kongarakalan project in nine to 12 months. Rama Rao noted that the Foxconn officials met Chief Minister K.Chandrashekar Rao on March 2 and announced plans to set up their manufacturing plant in Telangana.
“Today on May 15, we are holding a groundbreaking ceremony to launch works. Within a span of just two-and-a-half months, the project became a reality in Telangana. This shows the speed at which the state government works and also the commitment of the state government. Hopefully, by this time next year, we will be inaugurating the new facility," Rama Rao said.
Telangana ranked number two in the IT sector; out of every three jobs created in India in the last year, one was from Telangana, he said, recalling that Foxconn Group chairman Young Lu had praised Telangana’s speed. "Under the leadership of Chief Minister Chandrashekhar Rao, Telangana aspires to lead the way in driving India’s growth story and becoming an electronics manufacturing powerhouse,” Rama Rao added.
FIT chairman and CEO Sidney Lu said, "This marks the beginning of a new critical start in our global expansion journey. This facility will serve as a hub for our manufacturing expansion plans," adding that the facility would enable FIT to serve its customers better, expand its capabilities and create new opportunities for its team members. "We also look forward to continuing the fruitful relationship with the state government in the future,” he added.
