500k New Jobs Created by Mobile Phone PLI: Ashwini Vaishnaw

Ashwini Vaishnaw
CITATION: Image used for information purpose only. Picture Credit: https://bsmedia.business-standard.com

At the opening of Dixon Technologies (India)’s new smartphone manufacturing facility in Noida, Uttar Pradesh, on Thursday, Union Minister for Railways, Communications, Electronics & Information Technology Ashwini Vaishnaw stated that the government’s production-linked incentive (PLI) scheme has resulted in the incremental creation of 500,000 jobs in the mobile phone industry.

Vaishnaw asserted that the growth of India’s ecosystem for design and component manufacturing is “extremely encouraging,” noting that local value addition is rising daily and reaching “as high as 60%” in certain products.

In the third quarter (Q3) of the calendar year 2023 (CY23), Dixon, the largest domestic electronics manufacturing services provider in India, announced that it had begun producing smartphones for Xiaomi, a Chinese smartphone manufacturer, through its new manufacturing facility.

According to Vaishnaw, the new unit will employ up to 5,000 people to produce feature phones and smartphones on a big scale.

Dixon Technologies (India) vice-chairman and managing director Atul Lall stated, “We have a five-year association with Xiaomi India and are excited to start this new chapter that exemplifies synergy between our two organisations.”

Operating under Dixon’s wholly-owned smartphone manufacturing subsidiary, Padget Electronics, the facility is 227,000 square feet in size and was constructed with an investment of Rs 256 crore. It is capable of producing 25 million units a year.

This development coincides with the Indian government’s push for Chinese smartphone manufacturers to export from India in an effort to boost localization in the industry.

“We are thrilled with the new, cutting-edge manufacturing facility’s excellent procedures, productive production lines, and… Sunil Vachani, executive chairman of Dixon Technologies (India), stated, “We think that this partnership will leverage our excellence and superior execution as well as Xiaomi’s knowledge and leadership in the Indian business ecosystem.”

Dixon and Xiaomi India announced a collaboration in May of this year to produce and market smartphones that are Made in India. In the same month, the Chinese mobile manufacturer teamed up with domestic company Optiemus Infracom to start producing wireless audio products.

According to data from the International Data Corporation, as of Q3CY23, Xiaomi is the fourth-largest smartphone brand in India in terms of smartphone shipments, with a market share of 11.7%.

Read More: Click Here