BEIJING: Chinese telcoms firm Huawei Technologies is set to invest over $2 billion (£1.28 billion, €1.5 billion) in India over the next five years.

Huawei currently provides jobs for more than 6,000 people in the subcontinent, where the value of the firm's contract sales reached $1.5 billion in 2009.

Telecoms penetration is relatively small in India, which means the nation is an attractive investment opportunity for foreign firms.

Tina Tian, Gartner Inc's Chief Telecom Analyst in China, explained: "India has a large population and a big land area, which means a substantial market capacity."

Gartner cites India as the third largest telecom infrastructure market after the US and China, with sales of mobile equipment anticipated to reach around $4.96 billion in 2010.

Huawei announced that they have recently started the first phase of manufacturing in Chennai.

The company also plans to construct a new research and development park in Bangalore which will provide capacity for 3,000 research engineers.

Data sourced from China Daily; additional content by Warc staff