Tamil Nadu Chief Minister MK Stalin’s announcement of Google’s partnership to manufacture Pixel smartphones in the state has ignited a political controversy in neighbouring Karnataka.
The opposition BJP has criticized the ruling Congress, alleging that Karnataka is losing investors due to deteriorating law and order under the Congress government. The BJP accused CM Siddaramaiah of implementing illogical policies that hinder business growth and drive investors away.
Karnataka loses another investor to neighbouring state.
The deteriorating law and order and unease of doing business in Karnataka due to the failing governance of Congress govt is pushing investors and job creators to move out of the state.
BJP turned Karnataka into an economic… pic.twitter.com/dBA7G3wePa
— BJP Karnataka (@BJP4Karnataka) May 23, 2024
In response to the allegations, Karnataka Deputy CM DK Shivakumar accused the BJP of distorting facts. “It’s shameful of BJP leaders to tweet this without checking documents. How many investors left due to BJP’s harassment? When Congress was in power, many investors came. After the elections, we’ll provide a list of interested parties. Karnataka is a hub for growth, development, and peace,” stated DK Shivakumar.
India’s smartphone market has shown significant growth, shipping 34 million units in Q1 2024 with an 11.5% YoY increase, according to International Data Corporation’s Quarterly Mobile Phone Tracker. Tamil Nadu’s contribution to electronic goods exports underscores its position as a key player in India’s tech industry.
Until recently, Google was the only major global smartphone brand that hadn’t embraced India’s Make-in-India initiative. However, according to a report by the Economic Times, Dixon Technologies is preparing to produce 100,000 units per month, with plans to export 25-30 percent of these devices. This move is part of Google’s strategy to reclaim market share in India, the world’s second-largest smartphone market, where the Pixel 8 dominates, accounting for nearly 80 percent of all Pixel sales.
Previously, Pixel devices were manufactured in countries like China and Vietnam. Now, they will benefit from India’s production-linked incentive (PLI) scheme for mobile phones. This scheme, along with Dixon’s competitive production prices, is a key factor in Google’s decision. The partnership will involve Padget Electronics, a wholly-owned subsidiary of Dixon Technologies, which recently signed an agreement with Taiwan’s Compal Electronics, a global manufacturing partner for Google products. Padget Electronics will be responsible for manufacturing the Pixel devices.
