NEW DELHI – Dixon Technologies is planning a 300,000 sq. ft. factory here to produce Xiaomi smartphones, as India pushes Chinese tech firms to use local assembly partners.

Dixon will invest more than 4 billion rupees ($48.2 million) over three years in the factory, which is set to be inaugurated by a government official toward the end of September.

Beijing-based Xiaomi has been compelled to partner with Dixon for smartphone assembly because India is pressing Chinese companies to localize everything from manufacturing to distribution of devices. In a similar move earlier this year, Xiaomi contracted with India’s Optiemus Electronics to make its Bluetooth neckband earphones, a product it previously imported from China.