Tamil Nadu secures $4.4 billion agreements with Apple suppliers including Tata Electronics and Pegatron.
On Sunday, it was announced that Tamil Nadu has entered into investment agreements totaling over $4.39 billion with companies including Tata Electronics and Pegatron, both suppliers for Apple, as well as Hyundai Motors. Apple sees India as a significant catalyst for its future growth and aims to reduce its reliance on China by diversifying its production. Pegatron is also making progress towards establishing a second factory in India, where Tata Group commenced iPhone assembly last year.
Indian conglomerate Tata Electronics has committed to invest 120.8 billion rupees in mobile phone assembly operations, the state government said at the signing of the contracts.
“Tamil Nadu government is supporting investors in every possible way,” Chief Minister M K Stalin said at the event, adding that it plays an important role in India’s growth.
Pegatron, Apple’s Taiwanese supplier, is also investing 10 billion rupees to expand production, the government added.
Tata Power is separately exploring investments of up to Rs 700 billion in Tamil Nadu over the next several years, including investments in some existing projects, its managing director and chief executive Praveer Sinha said at a press conference at the event.
The agreements, announced at a meeting of global investors, are predicted to create thousands of jobs in the state.
The state summit comes days ahead of another investment summit in Prime Minister Narendra Modi’s home state of Gujarat, where hundreds of domestic and foreign investors are expected.
Sunday’s deals in Tamil Nadu include an agreement with JSW Energy to invest Rs 120 billion to develop renewable energy projects.
Auto major Hyundai Motors also committed Rs 61.80 billion, part of which is earmarked for electric vehicle (EV) batteries and car manufacturing, the government added.
Vietnamese electric vehicle maker VinFast agreed on Saturday to set up its first manufacturing facilities in India and work on an investment of up to $2 billion in Tamil Nadu, as more companies seek to penetrate the world’s third-largest vehicle market.
Nike shoemaker Hong Fu plans to sign an agreement with the government to invest nearly 10.4 billion rupees in India, with an additional 16.6 billion rupees expected soon, Aqeel Panaruna, chairman of Florenece Shoe – the company’s India partner – said at the event.
