Samsung Electronics has decided to open the world’s largest manufacturing plant in India. The ceremony was attended by the PM Narendra Modi and the South Korean president, Moon Jae-in. The factory will be the biggest in the world and will have the capacity to produce up to 120 million phones annually. It will be situated in Noida, in the state of Uttar Pradesh. The decision to expand the existing operations came after the ‘Made In India’ initiative of the Indian government. Recently, Apple has also decided to start the production of the iPhone 6 in India.
Indian market is one of the most major markets in the world. It has a total of 425 million people who use a smartphone. India is the second largest smartphone market in the world. The figure of the expected smartphone users will go to 700 million by the year 2021. The growth rate is in line with the Indian market which saw a rise of nearly 14% in the shipments last year. Samsung said that the factory will produce a large number of smartphones, starting from budget price phones near $100 and will go up to the flagship models.
The Indian market is very price sensitive. This is the reason Samsung wanted to meet their customer demands by expanding their production capacity instead of importing them. Samsung is the top smartphone manufacturer all over the world and this move will be a good boost for the Indian economy as well.