http://ridingtheelephant.blogs.fortune.com/2007/05/23/in-india-nokia-makes-manufacturing-a-success/
In southern India, Nokia (NOK), the Finnish mobile handset company, is leading the development of an electronics hardware zone where, along with eight of its suppliers, it will mop up more than $200 million investment and employ some 20,000 people within two years. Located an hour’s drive outside the Tamil Nadu state capital of Chennai on the highway to Bangalore, one factory is already being run by Nokia, and Foxconn of Taiwan, one of its suppliers, has another one nearby. Both have shown in less than a year that India is capable of manufacturing precision goods economically and to international standards.
Nokia chose the 200-acre SEZ site in 2005 over others elsewhere in India, and some abroad, because the state of Tamil Nadu offered it an SEZ location that would free it from some government hassle. The site is near the coast with seaport and airport connections, though these often cause more problems than they solve for importing components by sea and air - especially Chennai airport, which cannot cope efficiently with its passengers, let along cargo. Such infrastructure problems, plus high power costs, make it difficult for India to compete with China, though the problems are offset by exemption from import duties and some corporate tax holidays.