Fast-growing Chinese smartphone vendor Xiaomi is making moves towards manufacturing its devices in India.
The company is in talks with potential partners aimed at exploring assembling its devices in the market, the Economic Timessaid, citing an interview with the head of its Indian operations Manu Jain and international head Hugo Barra.
But Xiaomi's decision will depend on factors including the size of the investment that will be required, regulatory constraints and tax implications.
The company's two main partners in China – Foxconn and Inventag – both have Indian ambitions of their own, which could help positively influence the decision.
If Xiaomi decides to make the investment, it could be assembling smartphones in India within two years.
Barra said Xiaomi had considered buying Nokia's defunct manufacturing plant in Chenani, but decided that there would still be supply chain issues due to the lack of a large component ecosystem in India.
Nokia was forced to shut down production at its Chennai plant after regulatory complications left the company unable to include it in the sale of its device business to Microsoft. These complications included a tax dispute with Indian authorities related to the facility's operations.