The China-based Huawei is evaluating ways
to start production of mobile phones in India through contract fabricating in
relationship with Foxconn and is currently studying the business models and tax
incentives.
A delegation of Huawei, led by its India
CEO Jay Chen, met Telecom Minister Ravi Shankar Prasad today and apprised him
of its expansion plans for the country. "We had a very elaborate talk and
they have said that till now they have invested USD 2 billion in India in the
last 16 years," Prasad said. "They have a facility in
Sriperumbudur... they are selling one million phones in India... if you are
selling one million phones, you better start manufacturing here and they have
promised me, they will explore the possibility. They are in talks with Foxconn
on a contract basis. They are welcome to do business in India," Prasad
said.
Huawei is serving 40 networks worldwide
from its workplaces in India. Asked
about manufacturing plans in India, a Huawei representative, who was part of
the delegation, said, "(It) depends on the business volumes, we are still
evaluating... we are trying to understand the policy, tax incentives and the
business models. Currently, we manufacture the network equipment.

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