MUMBAI -- Amazon's first foray into producing devices in India begins later this year, the U.S. e-commerce company announced Tuesday, saying the move reflects its "commitment" to New Delhi's efforts to build a more independent supply chain.
Amazon will produce Fire TV Stick devices in the country. Manufacturing will be handled by a subsidiary of Taiwan's Hon Hai Precision Industry -- the iPhone assembler better known as Foxconn -- at a plant in Chennai. The effort "will be able to produce hundreds of thousands" of devices a year, according to an Amazon statement.
The decision was announced by Ravi Shankar Prasad, India's minister for electronics and information technology, and Amit Agarwal, head of Amazon's India operations, in an online meeting.
"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," Prasad said.
The move fits India's campaign for greater "self-reliance" following the disruption caused by the coronavirus and New Delhi's freezing out of Chinese companies in response to a border clash. The government formed a new subsidy program, among other measures, to promote local manufacturing and new investment.
In Amazon's statement, Agarwal noted the company's pledge to invest $1 billion in India to digitize small businesses and help them sell worldwide, enable $10 billion in exports and create 1 million jobs by 2025.