Google plans to move some Pixel production to India from China: Report

The company has initiated discussions with Indian firms such as Lava International, Dixon Technologies, and Bharat FIH (Foxconn's Indian unit), according to anonymous sources, the report said.

These potential partners have benefited from India's production-linked financial incentives, which have encouraged local manufacturing. Google's move aligns with Prime Minister Narendra Modi's efforts to position India as an attractive manufacturing hub, particularly as businesses seek alternatives to China due to various factors such as Covid-related disruptions and trade tensions.

During his visit to the US, Modi's delegation is expected to discuss matters including the removal of trade barriers in the tech sector between the two countries.

Apple has previously used India's production-linked incentives to expand its supplier network and significantly increase iPhone output.

India's market is crucial for Google's services, but the company has faced tough competition from affordable Chinese smartphones in the region.

By exploring local assembly of its Pixel smartphones in India, Google aims to boost its sales and establish a stronger presence in the market.

If successful, Google may consider expanding production to other hardware products like speakers.

However, it is important to note that the outcome of the ongoing talks is uncertain, and Google has the option to choose not to proceed with manufacturing the Pixel in India.