Global investors including multiple Apple suppliers and South Korean auto giant Hyundai will pour close to $4.4 billion in India’s Tamil Nadu, the southern state said on Sunday.
The deals, unveiled at a meeting of global investors in the state, follow a commitment by Vietnamese electric vehicle-maker VinFast to invest up to $2 billion in Tamil Nadu.
India has emerged as one of the biggest destinations for global investments as firms across the globe, including Apple, rush to diversify their supply chains from China.
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Beijing’s increasing tensions with the West and pandemic-era lockdowns that upended global supply chains have pushed firms, that once vied to build a hub in the factory floor of the world, to ‘de-risk’ their operations.
Apple, for instance, is counting on India as the next big driver of its growth.
Apple’s Taiwanese supplier Pegatron is already working towards building a second factory in the country. On Sunday, it committed another 10 billion rupees ($120 million) to expand production at its facilities in Tamil Nadu, the state’s government said.
The iPhone-maker’s Indian supplier Tata Electronics also committed to invest 120.8 billion rupees ($1.45 billion) for mobile phone assembly operations, the state government said during the signing of the agreements.
The Tata Group began assembling iPhones in Tamil Nadu last year.
Tamil Nadu’s chief minister MK Stalin said at the event the state government “will support investors in every way possible.”
He added the state seeks to play a major role in India’s growth. Pacts signed on Sunday are projected to generate thousands of jobs in the state.
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Array of domestic investors
Tamil Nadu’s summit comes days before another investment summit in Prime Minister Narendra Modi’s home state Gujarat where hundreds of domestic and foreign investors are expected to attend.
Sunday’s deals in Tamil Nadu include an agreement with JSW Energy to invest 120 billion rupees to develop renewable energy projects.
Separately, Tata Power said it was exploring investments of up to 700 billion rupees ($8.4 billion) in Tamil Nadu over the next several years.
Auto major Hyundai Motors also committed 61.80 billion rupees, some of it earmarked for EV battery and car manufacturing, the state government added.
Nike shoemaker Hong Fu is also set to sign a pact with the state to invest nearly 10.4 billion rupees in India, with another 16.6 billion rupees expected soon, Aqeel Panaruna, chairman of Florenece Shoe – the company’s India partner – said at the event.
- Reuters, with additional editing by Vishakha Saxena
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