CHENNAI : India’s southern state of Tamil Nadu has signed investment pacts worth more than $4.39 billion with firms such as Apple suppliers Tata Electronics and Pegatron, as well as auto major Hyundai Motors, it said on Sunday.
Apple is counting on India as the next big driver of its growth as the tech giant looks to diversify some production away from China, with Pegatron working towards a second factory in the country where Tata Group last year began to assemble iPhones.
Tata Electronics, a part of the Indian conglomerate, committed to invest ₹12,080 crore for mobile phone assembly operations, the state government said during the signing of the agreements.
“The Tamil Nadu government will support investors in every way possible,” Chief Minister M. K. Stalin said at the event, adding that it sought to play a major role in India’s growth.
Pegatron, Apple’s Taiwan supplier, will also invest ₹1,000 crore to expand production, the government added.
Separately, Tata Power is exploring investments up to ₹70,000 crore in Tamil Nadu over the next several years, including investments made in some existing projects, its chief executive officer and managing director Praveer Sinha said at a press briefing at the event.
The pacts, unveiled at a meeting of global investors, are projected to generate thousands of jobs in the state.
The state’s summit comes days before another investment summit in Prime Minister Narendra Modi‘s home state Gujarat where hundreds of domestic and foreign investors are expected to attend.
Sunday’s deals in Tamil Nadu include an agreement with JSW Energy to invest ₹12,000 crore to develop renewable energy projects.
Auto major Hyundai Motors also committed ₹6180 crore, some of it earmarked for electric vehicle (EV) battery and car manufacturing, the government added.
On Saturday, Vietnamese EV maker VinFast agreed to set up its first manufacturing facilities in India and work toward an investment of up to $2 billion in Tamil Nadu, as more companies seek to penetrate the world’s third-largest vehicle market.
Nike shoemaker Hong Fu is set to sign a pact with the state to invest nearly ₹1,040 crore in India, with another ₹1660 crore expected soon, Aqeel Panaruna, chairman of Florenece Shoe – the company’s India partner – said at the event.
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Published: 07 Jan 2024, 06:05 PM IST