India is poised to become a major player in the global supply chain in the electronics and IT products industry

Amazon India will start manufacturing electronics products from India, the company announced after a virtual meeting with the government of India. According to a senior official, this will further India’s mission of creating an Atmanirbhar Bharat, which is digitally empowered.

To begin with, Amazon is going to start manufacturing Amazon Fire TV sticks from India. The company will commence its manufacturing efforts with contract manufacturer Cloud Network Technology, a subsidiary of Foxconn in Chennai, and start production later this year.

“The device manufacturing program will be able to produce hundreds of thousands of Fire TV Stick devices every year, catering to the demands of customers in India. Amazon will continuously evaluate scaling capacity to additional marketplaces/cities depending on the domestic demand,” a statement by the Ministry of Electronics and Information Technology said.

The announcement came after the meeting between Union Minister for Electronics and Information Technology Ravi Shankar Prasad and Amazon’s Global Senior Vice President and Country Head for India Amit Agarwal.

Speaking on the occasion, Prasad said “India is an attractive investment destination and is poised to become a major player in the global supply chain in the electronics and IT products industry. Our Government’s decision to launch a Production Linked Incentive (PLI) Scheme has received a tremendous response globally. We welcome Amazon’s decision to set up a manufacturing line in Chennai, as it will enhance domestic production capacities, and create jobs as well. This will further our mission of creating an AatmaNirbhar Bharat which is digitally empowered.”

The Minister also mentioned that it is only a beginning for Amazon’s efforts to manufacture electronics products from India for India and export markets.

India has taken several key steps to encourage electronics manufacturing in India. The Production Linked Incentive (PLI) for Large Scale Electronics Manufacturing has emerged as a major success with many international companies commencing production of electronics goods from India. The entry of Amazon into this sector adds to the success story of electronics manufacturing in India.

The IT Minister wrote on Koo- “Under the leadership of PM Narendra Modi, electronics manufacturing in India has recently attracted some of the biggest investments from global giants. Happy to share Amazon India is the latest to join this success story of India.”

Prasad asked Amazon India to help in taking products made by India’s artisans and Ayurvedic products to global markets through the eCommerce Platform. He said, "Amazon is a global company but Amazon India must evolve as a truly India company deeply connected with the Indian business community and culture."