Xiaomi India has announced a partnership with Dixon Technologies to manufacture smartphones for both the domestic and export markets.

To deepen the value chain of Xiaomi smartphones, the homegrown electronics manufacturer will also investigate the establishment of a component ecosystem through wholly owned subsidiaries.

Dixon plans to begin producing Xiaomi smartphones in August-September at a new 320,000 square foot facility in Noida that is currently under construction.

"This partnership will leverage Dixon's manufacturing excellence and superior execution track record, as well as Xiaomi expertise and leadership in the Indian business ecosystem," said Atul B. Lall, vice chairman and managing director of Dixon Technologies.

The development comes after the government asked Chinese handset makers to collaborate with domestic manufacturers to deepen the supply chain in India and reap the benefits of the production-linked incentive scheme.