Foxconn, which is considered to be a major base of iPhone assembly in India, has suddenly called over 300 Chinese engineers back from India. This development has created panic in the tech industry.
However, the Ministry of Electronics and IT of the Government of India says that its effect will remain for a few weeks and the situation is completely under control.
India’s backup plan to respond to China
According to media reports, sources associated with Meity have said that this temporary crisis will be resolved soon. India’s local workforce is not only capable of filling this gap, but Foxconn plans to recruit 500 to 1,000 Indian employees in the next few weeks.
Not only this, now machinery and manufacturing tools in India are also gradually being developed domestic, which will reduce dependence on abroad.
What is China’s move behind a sudden return?
According to Bloomberg report, these engineers have recently been removed from Foxconn’s plant in India. This is not a normal internal shifting. Experts believe that this step is part of the strategy of China under which it wants to weaken China Plus One Strategy.
Many tech companies of the world are now making India and South Asia a new manufacturing base instead of China. With this, the Beijing government has now started prohibiting going out of skilled engineers and high-tech machinery.
What are the challenge and opportunities for India
These Chinese engineers of Foxconn used not only to produce, but also played an important role in training and technical knowledge transfer to Indian teams. Now that these experts are suddenly removed, it has become a new challenge for India.
But the government and the industry hope that this step will further faster skill development and technology in India.
Why are global investors worried?
So far, Foxconn or Apple has not made any official comment on the matter. In such a situation, the question is arising that this “tech block policy” of China will not affect India’s growing manufacturing dreams.
However, analysts say that India not only has human resources, but now the government may soon become a global manufacturing powerhouse with initiatives like the government’s “Make in India” and “Semiconductor Mission”.