Cisco announced it will start manufacturing in India as part of plans to diversify its global supply chain and drive US$1 billion in domestic production and exports over the next few years.
In a statement, the telecoms equipment and software provider explained the move is part of its strategy to create a “more diverse and resilient global supply chain”.
India launched the ‘Make in India’ to incentivise foreign companies to manufacture in the country, as part of plans to ramp up industry.
The new manufacturing hub was announced by Chair and CEO Chuck Robbins in New Delhi, following a meeting with Prime Minister Narendra Modi and several government figures.
The vendor is now building core manufacturing capabilities in India, including testing, development and logistics, and expanding in-house repair operations. The move will also reduce lead times and improve customer experience.
India is a key market for the US technology company with the second largest R&D centre outside of its home nation. Cisco had been operating in India since 1995.
"Today, we are announcing strategic investments in Indian manufacturing capabilities as the next step in delivering cutting-edge technologies to our customers in India and across the globe," said Robbins.
"Fuelled by a rapidly developing digital economy, India is a focal point of innovation and business for Cisco, and we remain deeply committed to our partnerships here.”
