Google Pixel Production Shifts from Vietnam to India: What’s Behind the Move?

The effect of the Make in India initiative of the Indian government is already visible in the form of Apple, now it seems to be reaching new heights. After Apple, India has received good news from Google. Apple has started manufacturing its google pixel smartphones on a large scale in India.

When the Trump government introduced the tariff policy, Apple imported 15 lakh mobile phones from India to the USA by air before the tariffs were applied, a similar step will now be taken by Google.

According to the report of Economics Times, Google’s parent company Alphabet is working on a plan to make its smartphones in the country. Google has talked to two major companies for this. One of them is Foxconn, which makes iPhones for Apple.

According to the report of Economics Times, Google is thinking of shifting the production of its Pixel smartphone from Vietnam to India. Google is talking to Dixon Technologies and Foxconn for this. Foxconn is already manufacturing iPhones.

Foxconn has an iPhone manufacturing plant in Tamil Nadu, Foxconn has also set up a new facility in Hyderabad, recently Foxconn has also announced to set up a new factory on 300 acres in Greater Noida. According to the report, Dixon and Foxconn will also make Google phones in India. The production of Pixel phones in Vietnam will be completely shifted to India.

The US administration under the leadership of President Donald Trump announced a tariff of up to 46 percent on Vietnamese goods, while a 26 percent tariff was imposed on goods coming from India.

Although a 90-day ban on tariffs has been imposed on April 9, the baseline tariff of 10 percent is still applicable. China, the world’s largest manufacturer of electronics items, has been excluded from this. A 145 percent tariff has been imposed on it.

This step is being taken by Google in view of the tariff announced by Trump recently. America has also talked about increasing tax on goods coming from Vietnam. Due to this, Pixel phones reaching America will become expensive. To avoid this situation, Google wants to shift the production of Pixel phones from Vietnam to India.

Google is completely dependent on Vietnam for the manufacturing of Pixel smartphones. The company wants to reduce this dependence. It wants to manufacture some parts in India in addition to the phone. If this happens, Google smartphones will become cheaper in India.

America and India are working on a trade deal whose objective is to take the trade between the two countries to 500 billion dollars by 2030. India wants to finalize this trade deal by September or October. If this deal is finalized between the two countries, it will become easier for Google to manufacture its phones in India. This will also be an important step for India’s Make in India initiative.

Google also wants to make some parts of the phone like cover, charger, battery, fingerprint sensor in India. Its main objective is to reduce the cost and increase competition by taking advantage of locally sourcing.

Although India is currently manufacturing Pixel phones on a small scale, about 45 thousand Pixel smartphones are manufactured in India every month.

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