Apple supplier Foxconn will invest $500 million to set up manufacturing plants in the southern Indian state of Telangana, the state’s IT minister said on Monday.

The investment will create 25,000 jobs in the first phase, K. T. Rama Rao said in a tweet.

Reuters in March reported that Foxconn had won an order to make AirPods for Apple and planned to build a factory in India to manufacture the products.

Apple has been shifting production away from China, where prior COVID restrictions disrupted the manufacturing of new iPhones and other devices. The tech company is also looking to avoid a hit to its business due to tensions between Beijing and Washington.

Foxconn in late March received approval from the Karnataka government for a $968 million investment in the state.

The investment by Foxconn is a major win for India, which is trying to attract more manufacturing investment from global companies. The country has a large pool of low-cost labor and a growing middle class, which are seen as attractive to foreign investors.

The investment is also a sign of confidence in India’s economic growth prospects. The country is expected to grow at an average rate of 7% over the next few years, making it one of the fastest-growing major economies in the world.

The investment by Foxconn is expected to boost India’s manufacturing sector and create jobs. It is also expected to help India reduce its reliance on imports of electronic products.

The investment is a positive development for India and is expected to have a significant impact on the country’s economy.

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