Huawei granted approval to make handsets in India: Report

Huawei Technologies has recently been granted a key approval from the Indian government that paves way for the Chinese telecom giant to make handsets in one of the world's fastest-growing markets for phones.

Huawei is likely to become the first renowned Chinese brand to begin making handsets in India, after the company on Wednesday confirmed winning a key manufacturing approval from local government, 19 months after its submission for the license, according to a Sina news report.

Allen Wang, Huawaei's consumer business group head in India, told media that India is an important overseas market, and the company is aiming for a top-three position there within the next three years. However, Huawei's India-based spokesman said the firm has not received official confirmation from the Indian government, according to the report.

Huawei shipped a total of 17.5 million smartphones globally over the January-March period, up 28 percent over the same period for the previous year, driven by a surging demand for its mid- to higher-end smartphone models, according to an earlier report.

The company set a target of 100 million global smartphone shipments for this year, after missing out on 2014's plan of 80 million, compared with an actual shipment of 75 million.

Setting up a new manufacturing base in India will help Huawei offset the lackluster growth momentum in its home market, as the Indian market, which currently owns 975 million mobile phone subscribers, is expected to expand at 26 percent annually over the next four years, according to the Sina report.

Huawei is not the only Chinese smartphone maker eyeing India. In late April, fellow leading Chinese smartphone maker Xiaomi held a press conference in New Delhi to launch its Xiaomi Mi 4i, its first launch outside of its homeland China, bidding on the country's huge sales potential.

Reports said Taiwanese company Foxconn, which manufactures a variety of Apple's products, will also make India its next manufacturing hub, and downsize its business in China due to the rising costs of labor within the country.