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Manufacturers look to India to tap market and diversify supply chains

Modi government rolls out incentives to compete with China and Vietnam but analysts are wary

The deserted Nokia factory in India’s southern state of Tamil Nadu was once a symbol of the country’s struggle to boost electronics manufacturing.

In 2014, Nokia shut production in Sriperumbudur — its largest plant in the world with more 8,000 employees — after a tax dispute with New Delhi and packed up to Vietnam.

Six years later, the abandoned factory is being taken over by Salcomp, the world’s largest phone charger manufacturer. Salcomp is expanding its operations in India rapidly, along with other Apple manufacturers such as Wistron, Foxconn and Pegatron. All are seeking to tap the Indian market and diversify supply chains from China — and reap the benefits of manufacturing incentives offered by New Delhi.

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