Will Trade War Make South India the Next Manufacturing Hub?
States like Tamil Nadu are dangling tax breaks and fast-tracking infrastructure, helping the country shake off its reputation as a difficult place to do business.
Putting the finishing touches on Ather scooters at the company’s factory in Hosur, Tamil Nadu.
Photographer: Gayatri Ganju for Bloomberg BusinessweekTakeaways by Bloomberg AI
From his office in Bengaluru, the tech capital of India, Benjamin Lin can see the above-ground metro stop that bears his company’s name. The Taiwanese maker of electronic components paid 650 million rupees ($7.5 million) for the naming rights, a bid to show the thousands of passengers a day that course through the Delta Electronics Bommasandra station that the company is part of the city’s future.
The investment is part of Delta’s five-year drive to establish a manufacturing hub in southern India. Besides the spanking-new research-and-development center where Lin and about 400 other Taiwanese and Indian engineers work, the company operates a 125-acre manufacturing facility in Krishnagiri, in the adjacent state of Tamil Nadu. That site churns out electric vehicle chargers as well as equipment that will be used to make iPhones by contract manufacturers for Apple Inc., which has announced plans to source most of its US-destined smartphones from India.
More From Bloomberg
SoftBank-Backed Ola in Crisis Mode A Year After Blockbuster IPO in India
India’s Small Traders Lose $12 Billion in Equity Derivatives
Asia’s Richest Tycoon Is Making America Great Again
Affordable Homes in India Dwindle to 7-Year Low, Report Shows
Jane Street’s Lucrative India Trade Highlights Key Market Quirk
