Bejing-based Chinese electronics and software company – Xiaomi Inc. wants its global smartphone component makers to invest in the world’s 2nd most populated country, India. It is likely to get $2.5 billion investment in the nation while also creating great job opportunities for Indians. It will generate 50,000 jobs.
Mobile Company could boost Indian Prime Minister’s flagship ‘Make in India’ drive that intended to create millions of job opportunities. Also could uplift the aim of Narendra Modi, turning Asia’s No.3 economy into an international manufacturing hub.
The phone maker company that looks targeting a big initial this year; has 6 smartphone industrialized plants in India. It hosted approximately 50 of its international suppliers at an investment summit held in New Delhi on Monday that was also sincerely attended by some chief government officials.
As per company’s statement, If it comes true that suppliers set up shop in India, then there will be a top market for the company that would certainly bring around dollar 2.5 million as an investment and also creates at least or round about 50,000 jobs. The Korean Samsung Electronics is the main competitor or the Chinese firm maintaining or taking the pole position in Indian market.
Manu Jain, the Managing director of Xiaomi stated that it now would assemble parts like memory and processors locally. In 2015, it started assembling cellphones through Foxconn in Southern India. He revealed that they are deepening the commitment with 3 more cell phone factories and their first SMT (Surface-Mount Technology) plan is dedicated to establishing local manufacturing.
SMT is basically a method meant for embedding components onto PCBs (printed circuit boards). Once occupied with components, PCBs contains chips, house memory, and other components, characteristically account for about half the cost of a mobile phone. This announcement came to light a week later when the capital of India; New Delhi levied a 10% import duty on some major components of smartphone such as populated PCBs. The South Asian market is Xiaomi’s 2nd prime market after China.
The Chinese company’s SMT plant will be operated by Taiwan’s Foxconn, the globe’s biggest contract electronics producer, and a crucial Apple supplier.
However, this push to get suppliers in India could trigger job loss concerns in India’s neighbouring country, China that holds a top position among the best electronics manufacturers in the world. Cheap labour in India could offer more competition to several manufacturers. The demand is vast and it would be a great opportunity as per the market requirement, Jaipal Singh revealed (Senior Market Analyst).