Samsung is opening up the world's largest smartphone factory in India.
The factory, inaugurated jointly by Indian Prime Minister Narendra Modi and South Korean President Moon Jae-in, will also help Samsung to compete with rivals such as China's Xiaomi, which became India's biggest smartphone brand by shipments earlier this year.
Since taking power in 2014, Modi has pushed his "Make in India" initiative, which encourages companies to set up plants in the country, as the nation attempts to bolster domestic manufacturing.
In 1997, the plant started manufacturing televisions, and in 2003, expanded to manufacturing refrigerators. India now has 120 mobile manufacturing factories that have provided employment to over 4 lakh people in just four years, Modi added. "I have been told that this unit will be the company's largest manufacturing unit".
"We are aligned with government policies and will continue to seek their support to achieve our dream of making India a global export hub for mobile phones", said HC Hong, Chief Executive Officer, Samsung India.
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With the begnining of this New Plant India's Make In India and Skill India Will get a major Push in the country. He spoke of the expansion of smartphones, broadband and data connectivity, which he described as signs of a digital revolution in India.
Right now, Samsung manufacturers 67 million smartphones in India.
He stressed that over one crore mobile phones would be manufactured in the new Samsung facility, which will give a boost to the country's economy, adding that with the help of South Korea's technological expertise and India's manufacturing expertise, both the countries' economies would be empowered. The facility will manufacture 1 crore units per month with around 30% of the production will be exported to countries in Middle East and African region.
Announcing the investment previous year, the South Korean giant said that it would position the Noida plant as a major production hub and create about 5,000 new jobs. South Korean President Moon Jae-in will also grace the event alongside the Prime Minister.
"Though we may have opened the doors to the markets with the Korea-Asean free trade agreement and Korea-India Comprehensive Economic Partnership Agreement, there may be difficulties in supplying our companies' products unless there is an adequate distribution network in those markets", he said.
"Unlike some other countries in the world which like Korean money but not Koreans, we like Koreans more than Korean money", Prabhu said in an apparent reference to uneasy relations between South Korea and some of its immediate neighbours.