Foxconn pulls out of India, “Make in India” is starting to get dangerous？

On July 10, Foxconn Group released a statement announcing that it had pulled out of its $19.5 billion semiconductor joint venture with India’s Vedanta Group. In response, India’s Union Minister Rajeev Chandrasekhar said that the decision had no impact on India’s semiconductor manufacturing goals, and that the government did not need to explain why, how, or ultimately, why the two private companies had partnered or chosen not to. It is important to realize that it was only in September last year that Foxconn signed a memorandum of understanding with Indian firm Vedanta to set up a joint venture. In its statement, Foxconn did not mention the reasons for its withdrawal or give any explanation. However, it should be noted that $19.5 billion, for the total amount of foreign investment attracted by India, is by no means gross, but a very important part. Not long ago in late June, the Indian Prime Minister Narendra Modi visited the United States, can be said to be “full of harvest“. Apple, Amazon, Microsoft, Google and other U.S. technology giants, many have made a commitment to invest in India. Among them, Amazon promised to increase its investment in India in 2030 to 26 billion dollars. It is not known to what extent the promises can be fulfilled, but it is an indisputable fact that a number of multinational corporations, including American companies, have been increasing their investments in India in recent years. But on the other hand, the reality of India and constantly to foreign enterprises to do “risk tips“. June 9, India’s law enforcement agency issued a notice, suspected of violating India’s “Foreign Exchange Management Act“ for the reason that the Indian branch of Xiaomi nearly 5 billion yuan of funds. Our channel has also shared this, and the video link I have placed below for interested viewers to click and watch. In today’s video, I’m going to share with you the timeline of the two companies’ cooperation, and the possible reasons for their exit. Why is it that despite all the criticisms about India’s business environment, a lot of foreign investment is still coming into the country? Is India an opportunity or a risk for foreign companies? Please join me in sharing. Feel free to share in the comments section, let’s start now.