Taiwan-Based Handset Manufacturer to Invest in India, Doubles Government's Expectations

Strategic Insights -

A Taiwanese mobile handset manufacturer has initiated talks with the Indian government to set up a manufacturing facility in the country, bolstering the nation's telecom sector. The move comes on the heels of Finnish giant Nokia's announcement to establish a similar facility in India. The Taiwanese company, which has a significant investment in China, is looking to invest a couple of billion dollars in phases, targeting the state of Tamil Nadu.

Key Takeaways:

  • The Taiwanese mobile handset manufacturer is in talks with the Indian government to establish a facility in Tamil Nadu, with plans to invest a couple of billion dollars in phases.
  • The company has a large manufacturing facility in China and is looking to set up similar facilities in other locations.
  • India's tele-density is expected to double in the next three years, with the government aiming to add 100 million new telephone connections in the next three to four years.
  • The country is attracting significant investment in the manufacturing sector, including steel, automobile, and telecom equipment.
  • FDI inflow has increased by 17% during the first six months of the fiscal year compared to the previous year.
  • The government expects FDI inflow to increase by at least 20% and touch US$6.5 billion in the current fiscal year.

Statistics:

  • Tele-density in India: 10.66%
  • Expected increase in tele-density: 100% (doubling within three years)
  • Expected new telephone connections: 100 million (in the next three to four years)
  • FDI inflow increase in the first six months of the fiscal year: 17%
  • Total FDI inflow in the previous fiscal year: US$5.3 billion
  • Expected FDI inflow in the current fiscal year: US$6.5 billion (increase of at least 20%)

Sources:

Source 1: Department of Industrial Policy and Promotion Secretary Ajay Dua (India Economic Summit 2005)

Source 2: PTI (Press Trust of India) - 28-11-2005 (Note: The date "28-11-2039" is likely an error and has been corrected to 28-11-2005, as it matches the context of the article and its release date.)