Monday, January 11, 2010

Huawei Technologies Contemplating on a Manufacturing Plant in India

Huawei Technologies of China is planning to invest nearly half billion dollar in India for setting up a manufacturing plant on research and development. Their plant is that this money will be invested in five years and it would create another five thousand jobs in Indian economy. This should be welcome news because Indian economy is still suffering to some extent from the implications of global economic recession.
High officials from Huawei have already visited in India to look into the matters and I think that the main reason they are going to invest in setting up a manufacturing plant is because of the fact that India has high tariff on imported telecom equipments.
As a result, if Huawei sets up a plant in India and produces the product then it will have to pay much less tax. Thus, it will be a good thing for the company and they can save a lot of money. Huawei is also expecting that they can get a larger market share of the expanding telecom equipments market in the country. 

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