Cisco will start manufacturing in India in a move to diversify its supply chain, targeting $1 billion in exports and domestic market production over the next few years, the tech giant announced Wednesday.
The U.S.-based telecommunications company said the manufacturing operation will meet growing customer demand in India as well as expand its supply chain capabilities.
Cisco is now building out its capabilities which include product testing, development and logistics and expanding in-house repairs.
The plan follows a meeting between Cisco CEO Chuck Robbins and India’s Prime Minister Narendra Modi in New Delhi and a series of strategic talks with two ministers and the government’s public policy think tank.
“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,” Robbins said in a statement. “Fueled by a rapidly developing digital economy, India is a focal point of innovation and business for Cisco.”
The country is home to Cisco’s second largest research and development center outside the U.S.