Korean giant Samsung Electronics Co. Ltd. today opened what is thought to be the world’s biggest mobile phone factory in India as demand for phones in the country surges.

Indian Prime Minister Narendra Modi and South Korean President Moon Jae-in cut the ribbon at the site in Noida, a city located a little under 20 miles the capital of New Delhi. This will double the output of phones from 68 million units to 120 million units a year.

The factory will produce everything from phones for under $100 to flagship phones, according to a report in Bloomberg. India is a huge market for low-end phones given that much of the population lives on meager wages – a reason Apple Inc.’s smartphones don’t have a stronghold there.

After China, India is the world’s second-largest smartphone market. Still, it’s said only about 400 million people in India from a population of 1.3 billion use a smartphone. It’s thought by 2021 there will be around 780 million connected phones in the country.

Samsung will be hoping to overtake Chinese phone manufacturer Xiaomi Inc., which this year became India’s biggest smartphone brand.

“This 50 billion-rupee investment will not only strengthen Samsung’s business ties in India, it will also play a key role in India-Korea relations,” Modi said at the inauguration of the factory. Last year Samsung said it would spend 49.2 billion rupees ($716.57 million) to expand the Noida factory over a three-year period.

Prime Minister Modi has imposed tariffs on imported smartphone components to lure companies to invest and manufacture in India. Under the banner, “Make in India,” Modi hopes to boost growth and create millions of new jobs.

“They are now looking at building a complete ecosystem,” IDC analyst Jaipal Singh told India’s Economic Times. “After smartphones, they can go into building top-of-the-line products in other categories like TVs, refrigerators as advanced manufacturing in India still lags behind. With the new facility, Samsung is going to have an edge over its rivals.”

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