In a significant boost to India’s southern state of Tamil Nadu, investment agreements totaling more than $4.39 billion were signed with prominent firms, including major Apple suppliers Tata Electronics and Pegatron and automotive giant Hyundai Motors. The state, known for its pro-business environment, has positioned itself as an attractive destination for global companies seeking to diversify production away from China.
Apple, eyeing India as a pivotal driver of its future growth, has aligned with Tata Electronics and Pegatron. Tata Electronics, a part of the Tata Group, committed to a substantial investment of 120.8 billion Indian rupees ($1 = 83.1030 Indian rupees) for mobile phone assembly operations. This aligns with Apple’s strategy to expand its manufacturing presence in India, with Pegatron working towards establishing a second factory in the country to assemble iPhones.
During the signing ceremony, Tamil Nadu Chief Minister M. K. Stalin expressed the government’s commitment to supporting investors in every possible way, emphasizing the state’s ambition to play a significant role in India’s economic growth. The agreements are anticipated to generate thousands of jobs, contributing to the state’s economic development.
Pegatron, Apple’s Taiwan-based supplier, is set to invest 10 billion Indian rupees to expand its production capabilities in Tamil Nadu, further solidifying the region’s position in the global electronics supply chain. In addition to the technology sector, the agreements include a noteworthy commitment from Tata Power to explore investments of up to 700 billion rupees in Tamil Nadu over the next several years. This investment encompasses various projects, emphasizing the state’s appeal across different industries.
The business summit in Tamil Nadu precedes a similar investment summit in India’s Prime Minister Narendra Modi’s home state of Gujarat, where domestic and foreign investors are expected to participate. The investment pacts announced on Sunday encompass a diverse range of sectors. JSW Energy, for instance, is set to invest 120 billion Indian rupees in developing renewable energy projects, contributing to Tamil Nadu’s efforts in sustainable and green initiatives. Automotive major Hyundai Motors has committed 61.80 billion rupees, partly earmarked for electric vehicle (EV) battery and car manufacturing. This aligns with the global trend toward sustainable mobility solutions.
In a separate development, Vietnamese electric vehicle (EV) maker VinFast recently announced plans to establish its first manufacturing facilities in India, pledging an investment of up to $2 billion in Tamil Nadu. Furthermore, Nike shoemaker Hong Fu is poised to sign an agreement to invest nearly 10.4 billion rupees in India, with an additional 16.6 billion rupees expected soon, according to Aqeel Panaruna, chairman of Florenece Shoe, the company’s India partner.
These investments underscore Tamil Nadu’s growing significance as a preferred destination for global businesses across various industries, marking a positive stride in India’s economic landscape.
