An arm of Reliance Industries has announced a partnership with U.S.-listed company Sanmina, an electronics manufacturer, to build an electronics manufacturing hub in India. Reliance has said that it is committing up to $220 million to the joint venture as it seeks to capture the meteoric growth of digital consumption in India, reported Forbes.
The digital economy in India is currently growing 50% a year and is expected to reach $1 trillion due to the growing availability of internet within the country and consumption of digital content. The deal is one that is looking to bring high-tech manufacturing opportunities to India as the country seeks to be more self-reliant in cloud services, 5G, IT, data centers, new energy, and more.
“Through this partnership, we plan to boost innovation and talent in India, meeting both Indian and global demand,” Akash Ambani, director of Reliance Jio, the technology unit of Reliance Industries, said.
Reliance is set to have a 50.1% stake in the venture in a deal expected to close by September 2022.
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