US technology major Cisco on Wednesday (10 May) announced that it will start manufacturing in India as part of the expansion of its footprint in the country. 

The manufacturing plant will reportedly be set up in Tamil Nadu and will generate 1,200 jobs at the outset, according to company CEO Chuck Robbins, reports Moneycontrol.

Robbins, who is currently on a visit to India, met with Prime Minister Narendra Modi on Wednesday.

"Thank you for your leadership, Honorable PM of India Narendra Modi! Thrilled to announce Cisco is investing in manufacturing in India, with an aim to drive over $1 billion in combine domestic production and exports," Robbins said in a tweet after meeting PM Modi.

According to the company, the new manufacturing operation will support the growing demand from customers in India as well as globally and to further strengthen and diversify Cisco’s supply chain.

"With this latest investment, Cisco will cater to the growing demand from customers in India and aims to drive more than $1 billion in combined domestic production and exports in the coming years," the company said in a statement.

The manufacturing facility will build Cisco’s best-in-class technology, designed to provide flexible, cost-effective delivery of next-generation services and applications and support complex cloud computing environments, the company said.

"Cisco is now building core manufacturing capabilities in India, including testing, development and logistics, and expanding in-house repair operations. In addition to supporting supply chain resiliency, reducing lead times, and elevating customer experience, this will add further impetus to the local economy," the company said.

India is a key market for Cisco and its second largest R&D centre outside the US.

“India is of strategic importance for Cisco, and we continue to bet on India. Today's announcement marks a significant milestone to power the next phase of growth for Cisco. This investment will enable us to bring state-of-the-art technologies to more people and businesses and help accelerate India’s transition into a leading digital economy,” said Daisy Chittilapilly, President, Cisco India & SAARC.