1 week ago
India Seeks Bigger Role as Google Diversifies Pixel Production
Google may move some production of Pixel phones and other devices out of China starting in 2027.
This is happening because technology companies want their factories and suppliers spread across several countries.
India and Vietnam could receive much of this work.
Vietnam currently has an advantage because it already has many suppliers and factories.
India has made progress, especially by producing many iPhones and increasing electronics exports.
However, India still imports many important parts and adds only about 20-22% of the value domestically.
The article says India should build better suppliers, infrastructure, skills, and rules instead of relying only on subsidies.
If it succeeds, India could make more complex products and attract more investment.
Google is reportedly planning to move Pixel smartphone, smartwatch, and wireless-earbud production out of China from 2027.
India and Vietnam are expected to benefit, though Vietnam currently has a stronger supplier and product-development ecosystem.
India already produces roughly one in five iPhones sold globally, with 2025 iPhone exports exceeding $23 billion.
Domestic value addition in electronics remains around 20-22%, with continued reliance on imported components such as semiconductors and displays.
The article says India must improve infrastructure, logistics, skills, regulation, and local suppliers to capture more manufacturing value.
- Who
- Google, along with other technology manufacturers diversifying their supply chains; India and Vietnam are potential beneficiaries.
- What
- Google is reportedly considering moving production of Pixel smartphones, smartwatches, and wireless earbuds out of China from 2027.
- Where
- Production is expected to shift from China, with India and Vietnam identified as principal potential destinations.
- When
- The reported production shift is expected to begin from 2027; the article also cites 2025 export data and FY26 electronics exports.
- Why
- Persistent United States-China tensions are encouraging companies to reduce dependence on a single country and diversify manufacturing.
Manufacturing opportunity
Remaining concerns
Google’s potential relocation
Manufacturing opportunity
The shift from China could give India a major opportunity to win production from global technology companies and attract foreign investment.
Remaining concerns
India may not initially receive development and manufacturing of Google’s most advanced Pixel devices, while Vietnam already has stronger supplier and design capabilities.
India’s progress
Manufacturing opportunity
Apple’s expanding manufacturing presence, rising iPhone exports, and record electronics exports suggest that India is becoming an important global supply-chain location.
Remaining concerns
Domestic value addition remains relatively low, and manufacturers still depend heavily on imported sub-assemblies, semiconductors, and displays.
Policy support
Manufacturing opportunity
The production-linked incentive scheme shows that targeted incentives can help overcome manufacturing hurdles and attract investment.
Remaining concerns
Subsidies cannot permanently make up for weak infrastructure, logistics, skilled-labor availability, supplier depth, regulatory uncertainty, and high compliance costs.
Key facts
- Reported shift
- Google may move Pixel, smartwatch, and wireless-earbud production out of China from 2027.
- Potential beneficiaries
- India and Vietnam are expected to receive relocated production, with Vietnam described as having an early advantage.
- India’s iPhone production
- India produces roughly one in every five iPhones sold globally.
- 2025 iPhone exports
- iPhone exports from India exceeded $23 billion in calendar year 2025.
- Electronics exports
- India’s electronics exports reached nearly $48 billion in FY26.
- Domestic value addition
- Domestic value addition in Indian electronics manufacturing is estimated at around 20-22%.
- Manufacturing ambition
- Manufacturing’s share of India’s real GDP remains around 17-18%, below the long-standing 25% ambition.










