Smartphone manufacturer Lava International and Huaqin Technologies held talks about creating an India-based venture charged with rivalling the likes of Hon Hai Precision (Foxconn) in securing big-name electronics manufacturing contracts, Bloomberg reported.

Citing a letter on the potential partnership sent to authorities in India, the news outlet claimed talks between the pair were at an advanced stage.

The resulting venture would apparently target business from both Chinese and US companies at a time of continued trade tensions between the pair.

Lava International currently produces low-cost smartphones, feature phones, tablets, PCs and related accessories under its own brand.

It promotes itself as being the only company providing “phones with complete control on design and manufacturing within India” and supports the country’s home manufacturing initiative. Its phones are also available in various other countries.

China-based Huaqin Technologies provides end-to-end product development, manufacturing, and operation of software and hardware systems for electronics. Its customers include global tech companies based in more than 100 countries.

Huaqin Technologies already has manufacturing and R&D centres in various Chinese cities alongside India, Indonesia and Vietnam.

The rumours come as India continues to push initiatives to promote manufacturing in the nation and as players such as Apple look to reduce reliance on China for their supply chains.

Earlier this year, Apple supplier Foxconn was reported to have shifted some iPhone production to its facilities in India.