Some foreign direct investment (FDI) projects were announced in 2022 that will create tens of thousands of jobs. Unsurprisingly, these deals are to take place in developing markets.
India was the destination of choice for several companies that are looking to utilise the country’s array of available talent to service their manufacturing and service-based operations. Also, the lower cost of operations in India is attractive, particularly for companies looking to diversify or relocate from China.
Capgemini, Foxconn, Logos, Teleperformance and Hong Fu Industrial Group announced the largest job-creating FDI projects in 2022.
1. Capgemini to go big in India
Capgemini, the French technology and consulting company, announced a huge workforce expansion across India, with the company aiming to create as many as 60,000 new jobs by the end of 2022. It already employs around 175,000 people across India, which makes up half of its global workforce. Capgemini sees India as a key element of its focus on the emerging areas of 5G and quantum computing. Furthermore, the new roles are not only in back-office operations, but are also innovation and management-focused.
2. Foxconn to add 80,000 new workers in India and Vietnam
Taiwan-based Foxconn announced it would create around 53,000 jobs in India over a two-year period in 2022. Foxconn is a primary manufacturer of Apple’s iPhones. The company is diversifying its manufacturing operations away from China as the country’s strict Covid-19 lockdown measures hampered output. Additionally, there are geopolitical tensions between China, Taiwan and the US.
Furthermore, Apple is outsourcing the manufacturing of its iPhone 14 to Tata Electronics. The largest Apple manufacturing plant will be built in Hosur and will employ up to 60,000 people. Apple is keen to bet big on India and move operations away from China.
Foxconn was not only busy in India. The company also announced it was investing $300m (T$8.98bn) in Vietnam. Its new factory will be based in Bac Giang Province in northern Vietnam. This facility will also manufacture Apple products, although it is not yet known which specific products will be made. Around 30,000 new jobs are expected to be created in this entity.
3. Logos to create 50,000 jobs in Kolkata
Logos, an Australian logistics property group, signed a memorandum of understanding to invest around $100m (A$141.48m) to purchase land to develop a logistics and warehousing park in Kolkata, India. The project is expected to create around 50,000 jobs, and the park will be spread over 200,000m2 of land.
4. Teleperformance to hire 20,000 across India
France-based Teleperformance, a provider of outsourcing activities, announced plans to create between 20,000 and 25,000 jobs across India by the end of 2023. The company already has around one-fifth of its 400,000-plus workforce based in India. The announcement should take the number of Teleperformance employees in the country to more than 100,000.
The company has cited the availability of skilled labour at an affordable cost as a key reason for upping its investment in India. The new roles will have an sustainability focus.
Teleperformance’s India CEO said the company would look to promote jobs in third-tier Indian cities, with working-from-home options. The company is also looking to increase hiring from the LGBTQ+ community and promote more women into senior leadership roles.
5. Hong Fu Industrial Group to employ 20,000 in southern India
Taiwanese footwear manufacturer Hong Fu Industrial Group will invest around $132m to open a new manufacturing facility in Tamil Nadu, India. The company estimates it will create approximately 20,000 new jobs over the next three to five years.
Hong Fu Industrial Group is one of the leading manufacturers of sports shoe brands such as Converse, NIKE, Puma and Vans.
Large investments underpin a successful 2022 for India
India’s attractiveness as a FDI destination is undoubtedly on the rise. The number of greenfield investments into India grew by more than 70% in 2022, according to provisional figures from GlobalData’s FDI Projects Database. The Asian country became the third-largest FDI market that year, having been the fifth largest in 2021.