Google has announced plans to invest billions of dollars in India’s Tamil Nadu state to establish smartphone manufacturing operations, selecting the southern state known for its industrial prowess.

The move by Alphabet Inc.’s Google involves assembling Pixel phones in Tamil Nadu, with new production lines to be set up in partnership with Taiwanese contract manufacturing partner Foxconn Technology Group, according to sources familiar with the matter. Additionally, Google’s Wing subsidiary will assemble drones in the state.

This decision marks Google's acceleration in manufacturing devices in India, following in the footsteps of other tech giants like Apple Inc., who are diversifying their manufacturing bases away from China to reduce geopolitical risks.

Tamil Nadu, often referred to as the "Detroit of India" due to its strong industrial base, is aiming to enhance its position in advanced manufacturing.

A delegation from the Tamil Nadu government, led by Minister for Industries T.R.B. Rajaa and senior executives, held discussions with senior Google management in the US to pitch their state as an ideal manufacturing location.

Google has not responded immediately to requests for comments regarding these developments. Indian news website Moneycontrol had earlier reported Google’s intentions to manufacture in Tamil Nadu.

Last year, Google announced its plans to commence production of Pixel 8 smartphones in India, although the specific location was not disclosed. Apple has already shifted some of its iPhone production to India, and Samsung Electronics Co. has also established assembly operations in the country.

The move by global technology giants to shift production to India is seen as beneficial for Prime Minister Narendra Modi's government, especially during the ongoing elections to choose new leadership. Modi’s production-linked financial incentives have been instrumental in attracting electronics manufacturers to India.

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