Xiaomi joined a growing list of suppliers looking to shift production from China to India, with Bloomberg reporting the vendor selected Optiemus Electronics to make its bluetooth neckband earphones in the country.

Optiemus Electronics is the first in India to make the vendor’s audio products, Xiaomi India president Muralikrishnan B told the news agency, adding the move is further proof of its commitment to manufacturing in the nation.

Nitesh Gupta, director of Optiemus Electronics, added the partnership highlights growth in the number of local companies capable of catering to domestic and international demand.

Taiwan-based Wistron, a major Apple supplier, is a strategic partner of Optiemus Electronics.

A Hon Hai Precision (Foxconn) subsidiary in March was tipped to start work on a $200 million factory in India, after winning an order from Apple to produce AirPods.

Over the past year, Apple stepped up production in India, with more than $7 billion worth of iPhones assembled in the country during Apple’s last fiscal year, a threefold year-on-year increase, Bloomberg reported.

In late 2020, the Indian government awarded INR450 billion ($5.5 billion) in incentives to domestic and international electronics companies to boost smartphone production over the next five years.

IDC data showed Xiaomi dropped from being the leading smartphone vendor in India in Q1 2022 to fourth place in the opening quarter of 2023, with shipments falling 35 per cent to 5 million units.

A year ago, the vendor was hit by allegations by authorities of money laundering and breaches of foreign exchange laws.