Xiaomi had said in April that it wanted its global smartphone component makers to set up base in India, in what could potentially bring as much as $2.5 billion of investment and create as many as 50,000 jobs.

India imposed a 10 percent tax on imports of key smartphone components, including populated printed circuit boards, in April as it moves to step up local assembly of mobile devices.

Holitech will manufacture components including camera modules, thin film transistor and fingerprint sensor at Tirupati in the southern state of Andhra Pradesh, Xiaomi said in a statement.

The company expects to begin manufacturing by the first quarter of 2019 with an aim to generate 6,000 jobs in three years.