Google, a subsidiary of Alphabet (NASDAQ:GOOGL) Inc., has announced plans to begin manufacturing its smartphones, including the upcoming Pixel 8, in India from 2024. This move aligns with the 'Make in India' policy and underscores the tech giant's view of India as a key market for its smartphones. The plan was unveiled by Google's senior VP of devices services, Rick Osterloh, following a virtual meeting between Google CEO Sundar Pichai and Indian Prime Minister Narendra Modi on Thursday.
The company will collaborate with international and domestic manufacturers such as Lava International, Dixon Technologies, and Bharat FIH (Foxconn's Indian unit) for local production. These firms have already secured production-linked incentives from the Indian government, further bolstering local manufacturing. Google also aims to expand its service network in India, which currently comprises 28 centers across 27 cities.
In addition to hardware manufacturing, Google is set to enhance its services in the country. The company plans to integrate metro ticket bookings into its maps app and is working with DMI Finance to provide small loans to merchants via Google Pay. This move comes in response to the rising demand for small personal loans in India and recent regulatory changes by the central bank permitting such facilities.
Google's increased focus on India is not without challenges. Despite the popularity of its Android ecosystem, the company is facing legal and antitrust scrutiny over its in-app policies and alleged market abuse. Disney has legally challenged Google's in-app policies.
In a positive development for Google, Prime Minister Narendra Modi has welcomed the company's plan to establish a global fintech operations center at Gujarat International Finance Tec-City (GIFT). Other tech companies including Apple (NASDAQ:AAPL) and Micron Technology (NASDAQ:MU) are also concentrating on India for growth. Apple is expected to account for 7% of all smartphone sales in India this year, while Micron Technology is planning to establish its first semiconductor plant in the country.
Google's commitment to India is further emphasized by the appointment of Sreenivasa Reddy, an industry veteran with senior roles at Apple and Ericsson (BS:ERICAs), to lead Google's government affairs in the country.
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