"If these companies (suppliers) choose to invest here, there is an investment opportunity of over Rs 150 billion and can generate employment for over 50,000 people," Xiaomi VP and India Managing Director Manu Jain said.
He added that if all the suppliers set up base in India, this would lead to one of the biggest ever single investment in the electronic manufacturing industry.
The suppliers' summit which kicked off today will continue till April 11. The component suppliers will visit Uttar Pradesh and Andhra Pradesh to explore and learn about investment opportunities in India, including incentives offered by the Centre and state governments, FDI policy, industrial policy and various state sector specific policies.
"The objective of the summit is to educate Xiaomi's global component suppliers about India's smartphone industry and encourage them to establish local bases in the country," Jain said.
Xiaomi, which is among the top smartphone players in India, started assembly of smartphones in India in 2015 and had two manufacturing units in partnership with Foxconn.
The company has now set up three new smartphone manufacturing units in Tamil Nadu and Andhra Pradesh, along with a facility for printed circuit board (PCB) manufacturing in India.
While the company didn't disclose investment details, it said the move will double its manufacturing capacity in India.
"We had two facilities for smartphone manufacturing earlier. Now we have added three more in Sri City, Andhra Pradesh and Sriperumbudur in Tamil Nadu. These are in partnership with Foxconn," Jain said.
Besides, a small number of phones are also being made in Noida with another partner - Hipad, he added.
These facilities employ over 10,000 people and 95 per cent are women, Jain added.
Xiaomi is also setting up a new PCB assembly unit in Sriperumbudur in partnership with Foxconn.
"We are committed to manufacturing in India. PCB is 50 per cent of the value of a phone... By Q3, all Xiaomi phones made in India will have PCBs that are locally assembled," he said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)