What Went Wrong in India? Foxconn Investing 1 Billion to Return After India Failed to Replace China!

In recent years, there has been a noticeable shift in the global manufacturing landscape as companies have moved their production bases from China to Southeast Asian countries like Vietnam and India. However, this trend has not always resulted in success. Foxconn, the world's largest electronics contract manufacturer and a key player in Apple's supply chain, initially moved part of its operations to India, attracted by its potential as the next "world factory." However, Foxconn's venture in India faced significant challenges, leading to a strategic reversal. In July 2024, Foxconn announced a substantial investment of 1 billion RMB to construct a new headquarters in Henan, China, signaling its renewed commitment to the Chinese market.

This decision to return to China underscores the challenges faced by India’s "Make in India" initiative, which aimed to boost manufacturing and establish India as a global production hub. Despite the initial optimism, Foxconn and other multinational companies encountered numerous obstacles in India, including inadequate infrastructure, supply chain inefficiencies, and government-imposed fines. These issues, coupled with cultural differences and power supply disruptions, severely hampered Foxconn’s production efficiency and quality standards in India.

China’s comprehensive industrial ecosystem, large pool of skilled engineers, efficient government support, and stable business environment offer unparalleled advantages that have drawn Foxconn back. With major clients like Apple also relocating some of their supply chains from India back to China, this development highlights the importance of a reliable business environment in attracting and retaining foreign investment. As Foxconn reestablishes its presence in China, the move poses significant questions about India's ability to compete on the global stage and challenges the long-term viability of the "Make in India" initiative.

This video delves into the reasons behind Foxconn’s decision, examining the broader implications for India’s manufacturing sector and its ambitions to become the next global production powerhouse. We explore the factors that led to the reversal, the challenges that foreign companies face in India, and the strategic advantages that make China an attractive destination for multinational corporations. As the global manufacturing landscape continues to evolve, what lessons can India learn to enhance its appeal to foreign investors? Join us as we explore these critical issues and their impact on the future of global manufacturing.

[larsnystrom]

To fleece foreign companies seems to be a favorite sport in India.
Also, their supply chain largely has to be from China, and they sabotage that!
This video isn't clear about that, just beating around the bushes!

[meggrobi]

Having been to India for work, India has a lot of infrastructure and social problem to fix before they could compete with China.

[khooyeesin]

Foxconn can't stand the snaky spicy India anymore and has to run back to China other wise it will be fined heavily when tax/custom audit start😂😂😂

[adenauerheesen]

Due to politics, Foxconn went from China to India. Due to economic, Foxconn returns to China from India .

[aliyap]

Investors in India experience losses. Investors lament the government's deceptive tax language.

[davidchew]

India is a big country of immense potential with constant missed opportunities. The culture of self interests first and above all seems to be India's stumbling block, coupled with a sense of self importance don't help either. They need to come down to earth and be more pramatic and face their shortcomings squarely and stop comparing themselves to China, which in truth is no comparison as China is in a different league.

[brianliew]

Simple; Without China, Terry Gu struggles to put food on his dining table. 😢😢😢

[taiwanstillisntacountry]

Made in little-India iPhones = free E.Colli.

[Jason-sfvx]

India is too complex as a whole to be managed at this moment. India is good in service namely talking but less on delivery or high moving production/project

[irritatedanglosaxon]

Don't let em 2nd chance, if not they will do the same mistakes

[wongsiang]

How India can compete with China is mind boggling. First India education standard is low and the attitude of people is toward work is not encouraging 👎👎👎😜India is chasing away all the investments by keep on changing the trade policy and etc.

[greatman-kh]

*Endia can't ever beat China even with full support from Father America.*

[mem]

Investing in India is risky. Corruption is rampant and even after complying nothing is guaranteed. The corruption is at the center as well as in its state. Think twice before investing in India.

[uber]

Pay cheap, pay twice. You pay for what you get....a 3 y-o said.

[jimmychoi]

Anyone who has ever been to India know that corruption is rampant in India and basic infrastructure is still lacking like sanitation, drinking water, skilled labour, etc… Foreign companies no longer go to China for their low cost labour as labour cost are much cheaper in Vietnam, Bangladesh, India, etc.. but it’s integrated supply chain & lots of skilled labour

[dannyboy]

The extreme unconventional business regulations along with substandard quality in the labor force are the key contributors for foreign investors to pull out of of India.

[Felipe-nj]

Foxconn & Apple had already went back to China…

[zongliangwu]

India is known to keep every penny you have invested and earned, forever

[kent]

Just for clarity. Foxconn is a Taiwanese multinational electronics contract manufacturer. It is also the same company that made a questionable deal during Trump presidency to invest in Wisconsin USA. That failed miserably too!!

[kingkong]

If any company wants to lose money, or want to be fine by india tax invasive. Then please go to india 😅.