Xiaomi India has inked a contract with Indian homegrown brand Optiemus Electronics Ltd. (OEL) to manufacture audio products in India, marking the first time an Indian supplier will make an audio product for the Beijing-based tech giant.

With the help of this collaboration, Xiaomi has started producing its first locally-made audio product at the OEL facility in Noida, Uttar Pradesh. OEL has two cutting-edge manufacturing facilities in Noida.

The company hopes to enhance domestic smartphone value addition by 50% over the next two years as a result of this relationship.

According to the corporation, the action is the beginning of a bigger artificial internet of things (AIoT) programme that will start with the localization of wireless audio items.

With 589 million smart devices connected to its platform, excluding smartphones, tablets, and laptops, the business has developed the top consumer AIoT platform in the world.

In the past, Chinese manufacturers were unwilling to produce smartwatches and headphones in India. However, as the pressure by Indian state agencies on Chinese corporations stepped up, they hurried to look into production partnerships with local businesses.

The Chinese company Huaqin Technology Co. and Indian smartphone manufacturer Lava are also discussing the creation of an electronics manufacturing joint venture with the goal of gaining business from Chinese and American clients.

One of the main objectives of Prime Minister Narendra Modi’s initiative to turn India into an export hub is to assist indigenous businesses like Optiemus and Lava in becoming global players.