Amazon to manufacture electronics in India

Its Chennai facility will produce lakhs of Firesticks.

Amazon India has said it will start local manufacturing of its devices here, reducing its dependence on China. This would give a leg up to the government’s Make-in-India push.

The e-commerce major will work with Foxconn’s subsidiary Cloud Network Technology in Chennai to make its Fire TV Stick (which helps streaming on smart TVs). The Chennai facility is expected to be operational later this year.

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Amazon was largely sourcing its Fire TV Stick from China and Taiwan for the India market. Amazon India, in a blog post, said the company is looking to make lakhs of devices in India every year and will consider scaling up manufacturing capacity based on domestic demand.

The Indian government recently introduced production-linked incentives (PLIs) for various electronic products.

Last month, Amazon India announced setting up an accelerator programme that aims to build and boost exports of locally made consumer brands globally. This is part of its additional $1-billion investment for India to digitise 10 million small and medium businesses, and enable $10 billion in cumulative exports from India.

Sale of soaps, hair oils, packaged foods and cleaners moved swiftly, pushing the country’s fast moving consumer goods sector to report a 7.3% growth in the December quarter in a year that was otherwise marked by Covid disruptions and uneven demand trends.