Xiaomi, the Chinese giant has recently joined hands with Padget Electronics, a subsidiary of Dixon Technologies, with the motive to retain its position in the Indian markets. The deal struck between the two companies centers around Padget Electronics assembling Xiaomi smartphones in its facility located in Noida, Uttar Pradesh.
While this partnership deepens Xiaomi’s roots in Indian soil, it also lends credence to the Indian government’s ambitious ‘Make in India’ initiative. Atul B Lall, Dixon’s vice-chairman, hailed the partnership as a “major milestone” for the project aimed at bolstering domestic manufacturing.
Xiaomi currently holds about 15% of India’s smartphone market, trailing behind Samsung and Vivo. But now, the Chinese tech firm will increase production of its handsets and other devices in the South Asian country amid increased regulatory scrutiny by New Delhi.
Padget itself has received grants from a government program that aims to ramp up telecom and networking product manufacturing. It means that both Xiaomi and Padget benefit from this deal, the real winner could be the ‘Make in India’ program. With each such partnership, India strengthens its position as a global manufacturing player, even as it negotiates the complex terrains of royalty payments and foreign investments.