Shiv Sena confirms iPhone-maker will not be setting shop in Maharashtra

Shiv Sena confirms iPhone-maker will not be setting shop in Maharashtra

Foxconn is the world’s biggest contract manufacturer of consumer electronics, which also includes iPhones. There was a lot of buzz regarding Foxconn setting up shop in Maharashtra but it has now been confirmed that it is unlikely to happen.

The confirmation was shared by Industries minister Subhash Desai on Monday. Foxconn had proposed to invest in $5 billion in the state to set up a plant to make mobile phones and components. It was also said that this plant will help create 50,000 jobs by 2020. However, the Taiwanese company has backed out from this plan as it is facing market-related issues. In addition to this, there is also stiff competition from smartphone-assembling firms in India.

The state had signed a memorandum of understanding (MoU) with the Foxconn in 2015. They had also zeroed in the land for the same in the special economic zone of Jawaharlal Nehru Port Trust, but things did go as planned. However, despite several meeting and efforts from the state, things are not going in the right direction. To encourage investments in the state, the officials are trying to change its industrial policy to give incentives on the basis of employment generated by the industry rather than the investment they are bringing.

Desai said, “We are proposing to change the way we give incentives. Investment in the state is important, but job creation is equally important. We want to encourage industries that create more jobs where locals can be hired”.

With regards to promoting locals to get job, the government has already readied the draft of the law which will make it mandatory for locals to get 80 per cent quota in jobs and will be presented in the coming session for approval. Providing 80 per cent job reservation for locals is one of the key promises made under the common minimum programme chalked out by the Maha Vikas Aghadi.