Taiwan’s Foxconn (2354.TPE) has signed a memorandum of understanding to spend US$5 billion on factories, research and development in the Indian state of Maharashtra that will employ 50,000 people, The Wall Street Journal reported, citing the state’s industries minister, Subash Desai. The investment would represent a shot in the arm for India’s manufacturing sector and a big bet for the company, which has long wanted to diversify its manufacturing base away from China, where it faces rising tax bills and employee wages. But investors say that bureaucratic red tape, unpredictable tax rules and strong labor laws have prevented India’s manufacturing sector from growing faster.
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