The government's production-linked incentive (PLI) scheme for mobile phone manufacturers has led to an incremental job creation of five lakh, Electronics and Information Technology Minister Ashwini Vaishnaw said on November 30.
Speaking at the inauguration of electronics maker Dixon's new smartphone factory in Noida, Vaishnaw said that 5,000 workers are employed at the facility.
With an investment of Rs 256 crore, the factory is built across 2.7 lac square feet, at an annual capacity of 25 million units. It is currently making phones for Chinese electronics major Xiaomi.
Dixon said that it is planning another new manufacturing facility to be opened in the next 10 months, which will have a capacity of producing 50 million hardware devices annually.
India has set an ambitious goal of producing $300 billion in electronics products by 2025-26, offering generous incentives through its production-linked incentive (PLI) schemes to attract device makers seeking to diversify their manufacturing capabilities beyond China.
"This is an industry where it's very important to create a critical mass. We have crossed that threshold now with $100 billion of electronics production and $44 billion of mobile phones. Today, we are in a position where we can move away from the import-substitution model and move on to an export-led model,” Vaishnaw had told Moneycontrol earlier this week.
Over the past year, Apple has been aggressively ramping up local production of its flagship iPhone devices in India. The Cupertino-based tech giant reportedly plans to increase production in India to over $40 billion in the next 4-5 years, after crossing the $7-billion production mark in the last fiscal.
Meanwhile, Google announced recently that it plans to make its Pixel smartphones in India, giving a big boost to the country's ambitions of becoming a global manufacturing hub. It plans to start local manufacturing with Pixel 8 and Pixel 8 Pro, with the first devices expected to roll out in 2024. The company will be working with domestic and international manufacturers to produce these smartphones.
Mobile phone shipments under the 'Make in India' initiative achieved a significant milestone, surpassing 2 billion units in 2022. This was underpinned by an impressive Compound Annual Growth Rate (CAGR) of 23 percent over nine years.
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