New Delhi: According to media reports, Google, a subsidiary of Alphabet Inc, has entered preliminary discussions with domestic suppliers in India to potentially relocate some of its Pixel smart phone production, diversifying its manufacturing beyond China.
With strict COVID-related restrictions hampering production in China, global tech giants are increasingly turning their attention to India as a manufacturing hub. Earlier this month, Apple supplier Foxconn received a project to commence iPhone manufacturing in India.
Sources familiar with the matter revealed that Google has initiated early conversations with Indian companies such as Lava International Ltd. and Dixon Technologies India Ltd., along with Foxconn Technology Group’s Indian unit, Bharat FIH. These discussions come as Google joins other major technology players in moving production operations to India. The potential partner companies being considered by Google have secured Prime Minister Narendra Modi’s production-linked financial incentives, which have played a significant role in bolstering local manufacturing. Apple, for instance, has utilised this program to expand its supplier network in India, resulting in a threefold increase in iPhone production to over $7 billion in the fiscal year ending in March 2023.
Prime Minister Modi has actively positioned India as an attractive alternative manufacturing hub, particularly as more companies seek to mitigate the risks associated with relying heavily on China, given the country’s stringent COVID lockdowns and ongoing trade tensions between Washington and Beijing. During his upcoming visit to the United States, Modi’s delegation is expected to engage in discussions covering various topics, including the elimination of technology trade barriers between the two countries. Last month, India’s Technology Minister, Ashwini Vaishnaw, met with Google’s CEO, Sundar Pichai, at the company’s headquarters in Mountain View, California. The meeting revolved around Modi’s local manufacturing initiatives and India’s state-supported technology drive.
As of now, representatives for Lava, Dixon, Google, and Foxconn have refrained from providing any official comments on the matter. The potential move by Google to shift Pixel smart phone production to India marks a significant development in the country’s growing prominence as a preferred destination for global technology manufacturing.
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