The effect of the Indian government's pressure on Chinese companies has started showing. The giant smartphone company Xiaomi has had to bow down to the government. The phone maker has partnered with Indian firm Dixon Technologies for smartphone manufacturing. However, both the companies will benefit from this partnership. Apart from the Indian market, this partnership has been done to export the phone in the international market. Let us see how this will benefit the country's economy.
Indian electronics manufacturer company Dixon will make new phones in association with Chinese phone maker Xiaomi. The Indian firm will get the benefit of the value chain of the Xiaomi smartphone company. Will help create a competitive environment for Dixon's growth. With the latest development, Indian companies will also be able to compete with international brands.
New plant being built in Noida
Dixon may start production of Xiaomi smartphones from August-September this year. Dixon's new plant is getting ready in Noida in 3,20,000 square feet. This is where the new smartphone will be produced.
Atul B Lal, Vice Chairman and Managing Director, Dixon Technologies, said that this partnership will leverage Dixon's excellent and superior track record and Xiaomi's experience and leadership in India.
Effect of government pressure
Actually, the government told Chinese smartphone companies that in India they will have to work together with Indian manufacturing companies. By doing this, Chinese companies can increase the supply chain and can also take advantage of the Production-Linked Incentive (PLI) scheme. That's why Xiaomi has also partnered with the Indian company.
PLI Scheme
To make smartphones, the Government of India provides assistance under the PLI scheme. If the price of the smartphone starts from $ 200, then international companies can take advantage of this scheme. However, there is no such condition for Indian companies. Xiaomi will get the benefit of PLI scheme by partnering with Dixon, because Dixon is an Indian company.
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