Last week's violence at a factory near Bengaluru - which is owned by Taiwan-based Wistron Pvt Ltd and manufactures Apple iPhones - was noted by the centre Tuesday, with the Department for Promotion of Industry and Internal Trade speaking to the Karnataka government and advising the rapid completion of inquires into an incident that resulted in around $7.12 million in damages.
The centre also asked the state to look into wage- and labour-related disputes and, crucially, ensure that investor sentiment is not affected as a result of the violence.
"Wistron is a very important project and a flag-bearer of India's ambitions to become a global hub for electronics manufacturing. The state government is committed to its success and business continuity," Karnataka officials said after the DPIIT meeting.
"We strongly condemn the violence... police investigations are going on and strict action will be taken against the culprits ," they said, adding they were "working closely with Wistron management to ensure the plant is restarted and genuine grievances of the workers are addressed".
Wistron is one of Apple's top suppliers. In India, it makes the iPhone 7 and the second generation iPhone SE, and employs over 10,000 people at its Bengaluru factory. The company also has factories in China, where it manufactures iPads in addition to the iPhones.
Political tension between China and India, and uncertainty over the Covid pandemic, mean some firms based in China are eyeing India as an alternate base. Among these are Taiwanese firms - including Wistron and Foxconn - who plan to invest $900 million in India over the next five years.
Earlier this week, after the Bengaluru factory violence, Chinese mouthpiece Global Times took a swipe at India, claiming that many in that country were urging Apple and its suppliers to move back because "factories in China are safest to invest in".
On Tuesday the Taiwan trade development council told Reuters the firms wanted government support on land and labour issues. "We are hoping that the Indian side would provide more, and not just incentives," James Huang, the council's Chairman, said.
The centre's taking notice of the Bengaluru factory attack comes as it seeks to ensure the millions of dollars of investment in the country is not derailed over labour and safety issues.
More importantly, for the Narendra Modi government, companies' decision to shift from China is a prestige issue. The centre has showcased this migration as a measure of the success of its policies.
Apart from seeing investment diverted to India, the issue of Taiwanese firms setting up base in India is problematic for China because it claims the island nation as its territory.
With input from Reuters
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