Amazon will begin manufacturing electronic devices in India later this year, said the Ministry of Electronics and Information Technology on Tuesday.
The announcement came after Union Minister for Electronics and Information Technology Ravi Shankar Prasad held a virtual meeting with Amit Agarwal, Amazon's Global Senior Vice President and Country Head for India.
Speaking at the meeting, the union minister 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. The Production Linked Incentive (PLI) Scheme launched by the government 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. This will further our mission of creating an Atma Nirbhar Bharat which is digitally empowered," he added.
The union minister asked Amazon India to expand the reach of products made by India's artisans and Ayurvedic products to global markets through the e-commerce platform. "Amazon is a global company but Amazon India must evolve as a truly India company deeply connected with Indian business community and culture," said Prasad.
Amazon will begin its manufacturing operation with contract manufacturer Cloud Network Technology, a subsidiary of Foxconn in Chennai and start production later this year. The device manufacturing program will have the capacity to produce hundreds of thousands of Fire TV Stick devices every year.
Amazon will continuously evaluate scaling capacity to additional marketplaces/cities depending on the domestic demand.
India has taken several significant steps to boost electronics manufacturing domestically.
( With inputs from ANI )
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