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‘500,000 jobs via PLI for cellular phone cos’

NEW DELHI : India’s production linked incentive (PLI) scheme for mobile phone manufacturing had generated 500,000 jobs, telecom and IT minister Ashwini Vaishnaw said Thursday, at the inauguration of the Padget Electronics’ new manufacturing plant which will make 25 million phones a year.

“Due to PLI, the incremental job creation in the mobile industry is 5 lakh and I’m confident that the number will increase in the next five years,” the minister said.

Dixon Technologies’ subsidiary Padget Electronics set up its new manufacturing facility in Noida with an investment of 256 crore, and had begun production of Xiaomi devices last quarter. The factory is equipped to make smartphones and featurephones.

The new factory will add 5,000 jobs, he said. Further, domestic value addition was rising steadily and was at 60% in some cases even as he termed the development of design and component manufacturing in India as “encouraging”.

He added that firms should also look at making mobile phone components for exports.

Padget is among several mobile phone manufacturers that have got benefits under the PLI scheme, having met the incremental production targets in 2022. “It is a momentous step towards our commitment of boosting the local smartphone manufacturing system in India. We believe that this association will leverage our excellence and superior execution and Xiaomi’s expertise & leadership in the Indian business ecosystem,” Sunil Vachani, executive chairman at Dixon Technologies said.

The company aims to boost the local smartphone manufacturing ecosystem in India while building a strong, world-class technology ecosystem. It is set to open another facility in the next 10 months which will focus on hardware manufacturing, with capacities of 50 million units.

The PLI scheme has helped India’s mobile phone manufacturers to gain scale at a time when brands including Apple have had to diversify supply chains and manufacturing bases in order to reduce their dependence on China. India’s electronics manufacturing might has also improved with production rising to over $100 billion within this year.

“We have a 5-year long association with Xiaomi India, and are excited to start this new chapter that exemplifies synergy between our two organizations,” said Atul Lall, vice chairman and MD at Dixon.

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Updated: 01 Dec 2023, 12:27 AM IST

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