Huawei, Foxconn in talks to start mobile phone manufacturing in India

China-based Huawei is evaluating ways to start production of mobile phones in India through contract manufacturing in association 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 recently 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 $2 billion (13,305.5 crore) 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 offices 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."

Apart from Huawei, officials of two other Chinese telecom companies, Le Eco and ZTE, met the minister. Also, global CEO of US-based Avaya, Kevin Kennedy, along with Vishal Agarwal, who is MD (India and Saarc), called on the minister.

"All these companies are into ICT, into electronic manufacturing and communication services and all of them are very bullish about India. They are keen to invest and expand their footprint in India," Prasad said.

"I made three things clear to them. You are most welcome to do business in India, but keep sensitivities in mind. India is an open democratic society, be sensitive to issues of cyber security and follow India's regulatory scenario properly.