Google is reportedly seeking suppliers in India to assemble its Pixel smartphones, following Apple’s lead in diversifying beyond China.

What Happened? The company has initiated discussions with potential partners, including Lava International, Dixon Technologies, and Foxconn’s Indian unit Bharat FIH, Bloomberg reported, citing sources.

These companies have already secured production-linked incentives from the Indian government, which has stimulated local manufacturing. iPhone maker Apple has ramped up production in India and has clocked massive exports from the country by leveraging the production incentives.

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Prime Minister Narendra Modi, who is on a visit to Washington this week, has been urging global technology players to shift production to India amid strained relations between China and the US.

Reports also suggest that Modi is slated to meet Tesla chief Elon Musk, setting off speculation that the electric car maker may set up a new factory in India.

Last month, India’s technology minister, Ashwini Vaishnaw, met with Google CEO Sundar Pichai to discuss India’s local manufacturing drive and its state-backed technology initiatives.

The talks with Indian firms underline Google’s efforts to expand production beyond China and Vietnam, but the sources told the business publication there is no certainty that these talks will result in a deal. However, they said that local assembly in India could help drive Pixel sales in the country and potentially lead to the production of other hardware, such as speakers, in the future.

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