Embattled telco Vodafone has announced plans to create up to 750 new jobs at its Kingston call centre in Tasmania.

The Federal Government has announced it will contribute $4 million to assist Vodafone in rolling out the new centre, while the Tasmanian Government will contribute $850,000 and waive the payroll tax for all new employees of the centre.

Premier Lara Giddings described the announcement as a massive vote of confidence in the Tasmanian economy.

"This is one of the biggest jobs announcements in Tasmania's history," Ms Giddings said. 

Vodafone has announced it will scale back its operations in Mumbai, and double its Australian workforce to total around 1,500 employees.

"This is a massive boost to the Tasmanian economy and a great example of State and Federal Labor working together with the private sector to grow jobs and opportunities for Tasmanians,” Ms Giddings.