Made in India Mobiles Arrive Courtesy Xiaomi & Foxconn Alliance


Prime Minister Narendra Modi’s dream of transforming India into a manufacturing hub is fast gaining traction.

Since coming into power, Prime Minister Narendra Modi has placed special emphasis on the ‘Make in India’ initiative. And, looking at the developments taking place, the movement is poised to be a huge success in a short period of time. The Prime Minister has proposed that companies come forward and manufacture everything from plastic to agricultural products in India itself. Mr. Narendra Modi has explained, “We should strive to be a nation that doesn’t import, but exports.” We must also encourage manufacturing in India along with channelizing the strength of youth through manufacturing. The front of gate development has taken place in the mobile industry already.

As the mobile industry continues to grow by leaps and bounds with every passing week, Taiwanese tech giants Foxconn and China’s Xiaomi have found ways in the Indian market. According to the recent reports, Foxconn is set to spend in tune of US$5 billion to build new factories in India. Foxconn will be building mobile phones for Xiaomi in India itself. With India already being the world’s third largest smartphone market, this development would encourage the Indian population to switch their allegiance to the Xiaomi brand. The lack of infrastructure in the country has forced companies to import devices from other countries. However, the process is set to undergo a major change. With a motive of challenging the big players like Samsung, local brands Micromaxx, Karbonn and Spice, Foxconn will be manufacturing phones for Xiaomi in Andhra Pradesh. For a long time, Nokia has been a kind of colloquialism for mobile phones in India. However, since the downfall of Nokia, the local brands have been garnering the Indian smartphone marketplace for a while. Xiaomi started the manufacturing of the Redmi 2 Prime at the new site, an India-specific upgrade to its best-selling budget smartphone. The company only entered the Indian market in July 2014. Despite being in a nascent stage, it has quickly become the firm’s second-largest market thanks to its low-priced phones proving popular with young, cost-conscious consumers. Close on the heels of the announcement of building more manufacturing units, the company also launched its first ‘Made in India’ smartphone, Redmi 2 Prime at a modest price of Rs 6,999.

“When we started out in July last year, we wanted to become part of the fabric of India,” said Hugo Barra, vice president of Xiaomi Global. “We will make large quantities of Redmi 2 Prime. Over time, all of our phones that we sell in India will be made in India,” he added without giving a timeline. Kartikeya Misra, director of industries, said that the Andhra Pradesh government is talking to more companies, including handset makers, to set up shop in the state. As the smartphone penetration in India is still shy of 40 percent, India can serve as a perfect platform for mobile companies to prosper along with setting up manufacturing hubs and be a part of the ‘Make in India’ initiative.


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“Thinking Aloud” reflects the emerging trends and varied outlook of the rapidly evolving internet and communication sector. An IAMAI publication, this is a part of the market education initiative of the association.

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