Union Minister Rajeev Chandrasekhar on Wednesday extended a warm welcome to American major United Parcel Service (UPS) for its upcoming plans to establish manufacturing facilities for tags used in tracking packages within the country.
UPS is a multinational shipping and supply chain management company founded in 1907.
According to reports, the largest parcel delivery company globally is reportedly engaging with several state governments to establish its local production strategies, taking advantage of a favorable investment climate for semiconductor chips in the nation.
This move aligns with the country’s ambition to emerge as a significant contributor to the global semiconductor supply chain, supported by incentives totaling $10 billion aimed at promoting domestic chip manufacturing.
In a post on X, Chandrasekhar expressed anticipation for UPs to initiate local production, stating that the country eagerly awaits their arrival.
Welcome @UPS – all the best! We look fwd to partnering WITH wth you to make your India semicon mfg plans a success and expand.@PMOIndia @Semicon_India https://t.co/iz2rivGFI8
— Rajeev Chandrasekhar 🇮🇳(Modiyude Kutumbam) (@Rajeev_GoI) May 29, 2024
From having an almost imperceptible presence in the global supply chain just ten years ago, the country has rapidly evolved into a pivotal player in the supply chain ecosystem, thereby generating substantial investment inflows and a plethora of job opportunities.
The International Monetary Fund’s estimations suggest that India is poised to become the world’s third-largest economy by 2027, boasting a substantial GDP of $5 trillion. This monumental growth trajectory has attracted the attention of global titans such as Apple, FedEx, and Foxconn, as well as the renowned US-based semiconductor giant Micron, all of whom are significantly expanding their manufacturing operations within India’s borders.
In a strategic move, Prime Minister Narendra Modi recently marked a significant milestone by laying the foundation stone for chip manufacturing plants valued at over Rs 1.25 lakh crore, signaling a major leap forward in India’s technological and economic prowess on the global stage.
