Wistron, a Taiwanese electronics manufacturer, has announced that it will be winding up its operations in India. The company is known for producing iPhones for Apple and employs approximately 5,000 people at its facility in Narasapura, Karnataka. This announcement comes after the facility was vandalized by workers in December 2020 over claims of unpaid wages and poor working conditions.
Wistron released a statement saying that it is making the decision to downsize its Indian operations due to “Business restructuring needs” and “uncertainties” caused by the Covid-19 pandemic. The company stated that it will be “focusing on key markets and downsizing operations in other locations” in order to maintain its competitiveness in the Global Market.
The facility in Narasapura was Wistron’s first and only manufacturing plant in India. It was established in 2018 with an investment of around $200 million and was expected to create around 10,000 jobs. However, the plant has faced several setbacks, including the December 2020 incident and a temporary shutdown in February 2021 due to Covid-19 cases among workers.
This decision by Wistron is a blow to the Indian Government’s efforts to attract Foreign Investment and boost local manufacturing under the “Make in India” Initiative. It also highlights the challenges faced by foreign companies in India, including labor issues and regulatory hurdles.
The Indian Government has expressed its disappointment over Wistron’s decision, with Commerce and Industry Minister Piyush Goyal stating that the Government will “not allow anyone to take India for granted” and that “tough action will be taken against those who violate our laws”. The Government has also emphasized that it remains committed to providing a “conducive business environment” for foreign companies in India.
Wistron’s decision to wind up its operations in India serves as a reminder of the challenges faced by foreign companies operating in the country, and the need for the Indian Government to address these challenges in order to attract more foreign investment and promote local manufacturing.
