500,000 jobs created by PLI scheme in mobile manufacturing ; informs Union Minister Ashwini Vaishnaw 

Pune Pulse

500,000 jobs created by PLI scheme in mobile manufacturing ; informs Union Minister Ashwini Vaishnaw 

Share This News

By: Pune Pulse

December 1, 2023

Pune: During the inauguration of Padget Electronics’ new manufacturing plant, which is capable of producing 25 million phones annually, India’s telecom and IT minister Ashwini Vaishnaw announced that the country’s production-linked incentive (PLI) scheme for mobile phone manufacturing has resulted in the creation of 500,000 jobs.

The minister expressed confidence that the mobile industry would witness a significant increase in job creation, with 500,000 new jobs being generated due to PLI. The minister further stated that this number is expected to grow even further in the coming five years.

Padget Electronics, a subsidiary of Dixon Technologies, has established a new manufacturing plant in Noida with an investment of ₹256 crore. The facility has already commenced the production of Xiaomi devices in the last quarter and is capable of manufacturing both smartphones and feature phones.

The company expects to create 5,000 job opportunities with the new factory. Additionally, the domestic value addition has been increasing steadily and has reached 60% in some cases. The development of design and component manufacturing in India has been termed as “encouraging” by the company.

In addition, he emphasized the importance for companies to consider producing mobile phone components for overseas markets. Padget, along with other mobile phone manufacturers, has reaped the advantages of the PLI scheme by meeting the production targets set for 2022. “This is a significant milestone in our endeavour to enhance the domestic smartphone manufacturing infrastructure in India. We are confident that this partnership will capitalize on our exceptional capabilities and Dixon Technologies’ expertise and leadership in the Indian business ecosystem,” stated Sunil Vachani, the executive chairman at Dixon Technologies.

The company’s objective is to enhance the domestic smartphone manufacturing ecosystem in India, while simultaneously establishing a robust and globally competitive technology ecosystem. Within the next 10 months, they plan to inaugurate an additional facility that will primarily concentrate on hardware manufacturing, with the capability to produce 50 million units.

Thanks to the PLI scheme, India’s mobile phone manufacturers have been able to expand their operations and increase their production capacity. This has been particularly beneficial at a time when major brands like Apple are looking to diversify their supply chains and reduce their reliance on China. In addition, India’s electronics manufacturing sector has seen significant growth, with production expected to exceed $100 billion this year. Atul Lall, vice chairman and MD at Dixon, expressed his excitement about the company’s continued partnership with Xiaomi India and the potential for further collaboration between the two organizations.

Angel home decor
ad-23590