India is the world's second biggest smartphone market - good reason says Samsung to set up what it calls the world's biggest phone factory in New Delhi.

The plant was opened at a ceremony attended by the President of South Korea Moon Jae-in and his Indian counterpart Narendra Modi . (SOUNDBITE) (Hindi) INDIAN PRIME MINISTER, NARENDRA MODI, SAYING: "This event today, is key in making India, the hub of manufacturing.

This investment of 50 billion rupees ($726.11 million) will not only strengthen business relations of Samsung in India but also improve India-Korea relations." Samsung is investing more than $700 million dollars over three years to expand the factory's capacity.

It will allow the South Korean firm to nearly double the number of smartphones it makes in India every year from 68 million to 120 million by 2020.

Allowing Samsung to better compete with its rivals.

China's fourth largest phonemaker, Xiaomi became India's biggest smartphone brand by shipment earlier this year.

But on Monday (09 July), doubts were cast over China's tech boom- as the phonemaker went public.

Xiaomi was valued at only 48 million dollars, well short of the 100 million it was expecting.

Samsung's is relishing a big opportunity in India to not only compete with its Chinese rival, but also overcome its sluggish earnings growth.

India is home to more than a billion wireless subscribers.