Amazon India is expected to kick off a production line by the end of the year for Amazon Fire TV stick – a device that connects TV screens to the internet – in the city of Chennai, capital of the southern state of Tamil Nadu.
The products will be manufactured in association with Cloud Network Technology, a Chennai-based subsidiary of multinational company Foxconn, Indian Information and Technology Minister Ravi Shankar Prasad said in a statement after meeting Amazon’s India head Amit Agarwal.
The device production program of Amazon would allow the company to manufacture thousands of Fire sticks every year, catering to both domestic demand and eventual export needs.
Prasad highlighted that the agreement with Amazon India was aimed at improving national production capacity and generating employment to promote a “self-sufficient India.”
Amazon’s decision to manufacture products in India is being promoted by the nationalist government as a success of its policy of encouraging foreign companies to produce products in the country.
“India is an attractive investment destination and is poised to become a major player in the global supply chain in the electronics and IT products industry,” the minister said.
E-commerce witnessed a major boost in the country after the pandemic turned it into a popular business option, which accounted for 4.5 percent of total sales in the first six months of 2020 in a market of over 1.3 billion inhabitants.