Lenovo gives a boost to PM Modi’s ‘Make in India’ campaign: To set up smartphone manufacturing unit in India

As India gears up to bolster its manufacturing sector, Prime Minister Narendra Modi’s ‘Make in India’ campaign got further thrust on August 18. The Chinese giant Lenovo announced that it is working on setting up a smartphone manufacturing assembly line in south India’s largest metropolis Chennai. The manufacturing unit is expected to employ 1,500 people as of now.

“Partnering with contract manufacturer Flex, previously known as Flextronics, Lenovo said in a statement it is working on a new assembly line in the southern Indian city of Chennai. Using imported parts, it will have an annual production capacity of six million smartphones and employ 1,500 people. Production of its Moto E range of smartphones has already begun,” Lenovo spokesperson said.

China which has made a conscious decision to set up manufacturing units outside the country as a larger part of its market reforms has made it clear that it wants to be an active player in Asia’s third largest economy and the fastest growing economy in the world. China’s Xiaomi, earlier in August, said it was joining forces with Taiwan-based tech giant Foxconn to start assembling phones in India. Foxconn is expected to invest around USD 5 billion in Maharashtra.

India is also the world’s fastest growing market for smartphones. Lenovo is the only China-based company to rank among the top five smartphone vendors in India. It is estimated to have a market share of around six percent in India through its Lenovo and Motorola brands. India’s manufacturing sector is hopeful that the ‘Make in India’ initiative would provide a platform to bolster the growth of the sector and create employment. With more entrants expressing interest, it seems to be heading in the right direction as of now.

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