New Delhi, Nov 30 : Homegrown Dixon Technologies' subsidiary Padget Electronics will manufacture Xiaomi smartphones at its new Noida factory that has been set with Rs 256 crore investment, it said on Thursday. The factory was inaugurated by IT Minister Ashwini Vaishnaw which is likely to generate around 5,000 new jobs. The manufacturing facility has an annual production capacity of 25 million units. 'We have seen complex manufacturing at the new Dixon facility which is an answer to those who say India is only assembling phones and not manufacturing them,' said the minister. Dixon Technologies Executive Chairman Sunil Vachani said that it is a 'momentous step towards our commitment to boosting the local smartphone manufacturing ecosystem in India'. 'We believe that this association will leverage our excellence and superior execution and Xiaomi's expertise and leadership in the Indian business ecosystem,' Vachani added. The IT Minister also acknowledged India's emergence as an smartphone export hub. Earlier this week, Vaishnaw said that 99.2 per cent of the mobile phones used in the country are manufactured locally. "The mobile manufacturing industry has crossed $44 billion worth," he added while speaking to reporters after visiting the Tata iPhone plant in Tamil Nadu's Hosur. India has an ambitious goal to produce electronic goods worth more than $300 billion by 2025-26 and the manufacturers are encouraged by schemes and subsidies, the Minister said. India is surpassing China in the production of mobiles and marching ahead, he said. /IANS