India's bid to attract foreign capital just received a shot in the arm. Foxconn announced in an exchange filling that it will invest $1.6 billion on several projects in India. Though the details aren't known, the funds are for 'operational' needs, possibly to set up two factories in Karnataka for the manufacture and assembly of iPhones.
This is one among many examples where Foxconn, also known as Hon Hai. and other Taiwanese manufacturers are continuing to exit China in preference for countries such as India, Vietnam, Malaysia and Indonesia. Big US multinationals have also announced they are diversifying their investments. Intel and Microsoft are moving some operations from China to the US. Nike and Dell said they will relocate to Vietnam and Mexico.
There is a growing disenchantment with China. The political climate under Xi Jinping has turned increasingly nationalistic and unstable. Their post-pandemic rebound has been tepid because of a real estate slump and growing local government debt. The uncertainty has pushed Chinese families to save rather than spend, thereby depressing demand.
India seems to have had a good start. Creating a stampede of investors will now depend on two factors - whether we can reduce red tape and how quickly we can provide the necessary infrastructure.
Tailpiece.
Got up at 20' to 6, the chores and was ready by a quarter to 10.
Went for the matinee show of 'Kaathal' starring Mammootty and Jyothika. It's good. Talks about the tumultous family life of Mathew, who's gay and Omana, who's normal.
The evening chores.
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