There will be challenges but we can sustain growth: Ashwini Vaishnaw on exit of Foxconn's Chinese staff

Union Minister Ashwini Vaishnaw

Union IT Minister Ashwini Vaishnaw has commented on reports stating that Foxconn is pulling its Chinese engineers from India. Speaking to The Economic Times, the minister said that India is resilient, and the government has confidence that it will be able to sustain growth.

Vaishnaw said that India is developing its own capabilities in a very sustained way. He noted that the real skill level comes primarily from the mechanical part, glass part, and the overall fitting part. India has already taken conscious efforts to develop those capabilities in the last three to four years, he said.

India has developed suppliers for a majority of the nearly 1,000 parts that go into a mobile phone, Vaishnaw said, while adding that electronics component scheme is going to complement many other parts that go into mobile phones and other electronic devices.

"Overall, the ecosystem is getting developed very well. There will be challenges in every growth path, but we have the confidence that we will be able to sustain growth," Vaishnaw was cited by the publication as saying.

When asked if India initially needs support in terms of component makers or talent from China till it develops its capabilities fully, the union minister said that support is already coming from Taiwan, US, South Korea and other places, as well as Indian engineers. "The capabilities today we have on our own country are significant, especially design capabilities. So, we will be able to sustain our growth. Our country is resilient. The world has enough opportunities for all, and we should continue path we have set," Vaishnaw told the publication.

Earlier, sources told Moneycontrol that the government sees Foxconn's withdrawal of more than 300 Chinese engineers from its iPhone plants in Chennai and Bengaluru as both a challenge and an opportunity to diversify its talent pool.

While the exit of mid-level Chinese engineers from the company's Chennai and Bengaluru plants is a challenge, it is not insurmountable, the source cited above said.

According to sources quoted in both Bloomberg and Moneycontrol, the withdrawal began around two months ago and has so far involved over 300 engineers. Most of the remaining foreign staff at the sites are believed to be from Taiwan.

Also read: Apple's India plans hit the Great Wall after Foxconn sends over 300 Chinese engineers home