Google explores shifting Pixel smartphone production to India, joining tech giants eyeing manufacturing hub

Alphabet's subsidiary, Google, is exploring the possibility of shifting a portion of its Pixel smartphone production to India, according to a report by Bloomberg. The company has initiated early discussions with domestic suppliers as it looks to capitalise on India's growing potential as a manufacturing hub. This move comes as global tech giants, including Google, are seeking alternatives to China due to the geopolitical shifts and impact of strict COVID-related restrictions on production.

India has emerged as an attractive destination for manufacturing activities, with various companies considering it as a viable alternative to China. Apple, for instance, has already partnered with Foxconn, one of its key suppliers, to manufacture iPhones in India. This strategic decision allows Apple to diversify its production base and mitigate the risks associated with relying heavily on a single manufacturing location.

In Google's case, the company has engaged in talks with prominent Indian suppliers such as Lava International Ltd, Dixon Technologies India, and Bharat FIH, the Indian unit of Foxconn Technology Group. These discussions signify Google's interest in leveraging the manufacturing capabilities and expertise of these domestic companies to enhance its production capacity for Pixel smartphones.

By exploring manufacturing options in India, Google aims to tap into the country's favorable business environment and vast pool of skilled labor. India's government has implemented several initiatives to promote local manufacturing, such as the "Make in India" campaign, which encourages both foreign and domestic companies to manufacture their products within the country. These efforts have resulted in improved infrastructure, streamlined regulations, and various incentives for businesses.

The potential shift of Pixel smartphone production to India could bring several benefits to Google. Firstly, it would help the company establish a localised supply chain, reducing dependency on external suppliers and potentially lowering production costs. Additionally, manufacturing in India would enable Google to cater specifically to the demands and preferences of the rapidly growing Indian smartphone market. India also represents a significant growth opportunity for Google as the penetration of Pixel smartphone remains pretty low in the country.

Also Read 

'Buying Netflix at $4 billion would've been better instead of...': Former Yahoo CEO Marissa Mayer

ChatGPT beats top investment funds in stock-picking experiment