New Delhi, May 29 (IANS): Union Minister Rajeev Chandrasekhar on Wednesday welcomed American major United Parcel Service (UPS) for its plans to manufacture tags used in tracking packages in the country.

UPS is a multinational shipping and supply chain management company founded in 1907.

In a post on X social media platform, Chandrasekhar said the country looks forward to welcoming UPS to start local production.

"@UPS all the best. We look forward to partnering with you to make your India semiconductor manufacturing plans a success and expand," Chandrasekhar posted.

Reports said the world's largest parcel delivery company is apparently in touch with some state governments for its local production plans, leveraging a friendly chip investment environment in the country.

The country is on the path to becoming a key player in the global semiconductor supply chain with $10 billion of incentives provided to encourage local chip manufacturing.

From a negligible presence in the global supply chain a decade back, the country now has a significant role to play in the supply chain ecosystem, creating investment and job opportunities.

The IMF estimates say that India will be the world's third-largest economy by 2027, with a GDP of $5 trillion.

Global giants like Apple, FedEx and Foxconn -- along with US-based semiconductor giant Micron -- are scaling up manufacturing in India.

Prime Minister Narendra Modi recently laid the foundation stone for chip plants worth over Rs 1.25 lakh crore.