China's leading telecom gear maker the $7.3-billion ZTE Corp has reportedly met with Vodafone Group to set up a world-class GSM handset manufacturing hub in India to meet low-cost handset requirements for Indian, Brazil, and Russian markets. Handset manufacturing costs are expected to be lower in India than in China or Brazil.

While the plan will take several months to materialize, the project is being targeted at either Tamil Nadu or West Bengal.