China’s Xiaomi said it wants its global smartphone component makers to set up base in India, in what could potentially bring as much as $2.5 billion of investment to the South Asian nation and create as many as 50,000 jobs.
The move could boost Prime Minister’s Narendra Modi’s flagship ‘Make in India’ drive. Modi wants to turn India into a global manufacturing hub in a bid to boost job growth in Asia’s third-largest economy.
New Delhi has a roadmap to increase local assembly of smartphones and last week it announced a 10 percent duty on the import of key smartphone components, including populated printed circuit boards (PCBs), as part of the plan.
Xiaomi, which has unseated Korean rival Samsung Electronics to take the pole position in India’s smartphone market, hosted 50 of its global suppliers in New Delhi at an investment summit on Monday, which was also attended by key Indian officials.
If all 50 suppliers were to set up shop in India, it would bring in $2.5 billion in investment and create as many as 50,000 jobs, Xiaomi said.
Xiaomi itself now has six smartphone manufacturing plants in India, its biggest market behind China.