Google is set to manufacture the phones at an existing Foxconn facility in the southern state of Tamil Nadu, reported BBC.

The firm will also manufacture drones in the state.

Sources told BBC that Alphabet's Google would make advanced versions of Pixel smartphones at the Tamil Nadu facility and that manufacturing would begin within this calendar year.

Google and Foxconn have signed a contract to this end, the source said.

Foxconn has two facilities in Tamil Nadu.