Foxconn’s proposed $5 billion investment in Maharashtra under scanner

Last year Foxconn, world’s largest contract electronics manufacturer, signed a MoU with Maharashtra to invest $5 billion in the state over a period of 5 years. The plan included developing new electronics manufacturing facility and data centers, and was touted as one of the most significant investment in the state. However, after 1 year and CM’s foreign tours, no real investment announcement have been made by the company even though the state government had cleared 1,500 acres of land in the state for the same.

Foxconn is the largest manufacturer of iPhones in the world, and already operates two facilities in the country i.e. Sri City, Chittoor, Andhra Pradesh and Navi Mumbai. The production from the Navi Mumbai facility was started in August’16. The company’s plans to make India its next manufacturing powerhouse was a major boost to the Govt. of India’s “Make in India” campaign. However, with no concrete plans in sight, the firm may lose its privilege over the land and other tax breaks. Also, since the investment was projected to employ 50,000 resources in the facilities, thus it may become a political tug of war if nothing concrete comes out in near future.

Although the company is notorious for its lower-than-ethical treatment of its employees with punishable working hours. It was also under investigation in China over irregularities in working practices. With India’s labor laws still archaic, the government needs to be extra cautious to save local resources from exploitation.