VIVO and Dixon join hands! Now we will produce smartphones together, how will Indian users benefit?

The business of mobile phone manufacturing is growing rapidly in India. Now another big step has been taken in this direction. The central government has approved the joint venture between Chinese smartphone company VIVO and Indian electronics company Dixon Technologies. After this partnership, both the companies will work on increasing the production of smartphones in India.

After the approval of the government, the question is arising that what benefit will India get from this partnership? Many experts believe that this will promote mobile manufacturing in the country, strengthen local companies and may also create new employment opportunities.

Mobile production will increase in India

Under the new partnership, Dixon will hold 51% stake in the new company, while Vivo will hold 49%. Both the companies together will make smartphones and other electronic products in India. Its biggest advantage will be that many of the mobile phones which were earlier manufactured abroad will now be able to be manufactured in India. This will increase local manufacturing in the country and India will move towards becoming a major center of electronics production.

Employment and investment will get a boost

With the increase in mobile production, new plants, machines and supply chains will be required. This can create new employment opportunities in factories, logistics and other sectors. Also, Indian companies will get a chance to work with new technology and big brands. Dixon already manufactures many electronics products. The partnership with Vivo can further increase the company’s smartphone manufacturing capacity.

Why was government approval necessary?

According to Indian Government rules, companies from neighboring countries like China have to obtain government approval before investing in India. For this reason this partnership also needed government approval. After getting the approval, both the companies will now move towards starting a new company.

How will Indian users get the benefit?

If smartphone production increases in India, its benefits can also directly accrue to customers. Manufacturing of phones locally will improve the supply, due to which many models will be available quickly. By reducing dependence on imports, the possibility of cost reduction in future will also increase. Also, service centres, spare parts and after-sales support can also be improved. However, whether phone prices will reduce or not will depend on the company’s pricing strategy and market conditions.

The country’s economy will benefit

If more smartphones are made in India then dependence on imports can be reduced. This will save foreign exchange and strengthen the manufacturing sector of the country. The ‘Make in India’ campaign will also be strengthened by this. Experts believe that if more such partnerships take place, India can further strengthen its position among the world’s major smartphone manufacturing centers in the coming years.