Alphabet's Google (NASDAQ:GOOG) (GOOGL) has instructed suppliers to start producing its Pixel smartphones in India no later than the upcoming quarter. The possible goals of the move are to broaden its presence in the rapidly expanding Indian smartphone market and diversify its supply chain away from China.

According to the article, which cited a source familiar with the topic, Google plans to sell over 10 million Pixel smartphones in 2024. This goal follows the shipment of over 10 million devices for the first time last year during a worldwide economic slump. The supply chain strategy is part of this goal.

In the upcoming weeks, Google will set up the production line for its flagship Pixel 8 Pro in south India, and in the April–June quarter, it will begin shipping phones. The source states that in the middle of this year, the Pixel 8 would be manufactured in the northern part of the nation.

"There are other internet companies than Google that have begun to search for a 'China+2' approach. According to the study, one of the insiders stated, "That means suppliers should have multiple non-China options for better supply chain resilience. Diversifying away from China into another place is not enough."

Google's intentions to produce phones in India coincide with the government of India's efforts to establish the nation as a center for digital production. In an effort to encourage businesses to establish local supply chains for smartphones and PCs, the government is considering tightening import restrictions and offering incentives.

"The U.S.-China trade conflict led Google to decide to shift some of its Pixel phone manufacture to Vietnam. Regarding its expansion into manufacturing in India, Eddie Han, research director of Isaiah Research, told the news agency, "We think the company also considers the nation's investment incentives, import tariff policies, as well as its massive domestic market."