Chinese smartphone maker Gionee will be selling its eight-core Android handset in India for a low price of just $383 come mid-April.
Microsoft will, however, sign a services agreement with Nokia to continue to develop products at the plant, the company says.
India appears to be one of the fastest growing market for the messaging app with over 4 million active users joining every month.
The plant could help HTC expand its presence in India and potentially lead to lower prices by limiting shipping costs.
Apple's lower smartphone sales and overwhelming competition from Samsung have prompted the company to offer the iPhone 4 to Indian consumers, says The Economic Times.
Smartphone use in India is growing four times faster than the global average, according to research firm Strategy Analytics.
The site will allow third-party users to list and sell their merchandise to customers, but the retail giant is prohibited from selling its own inventory.
Indian government will reportedly set up a lab in Bangalore to test equipment from the Chinese network-gear makers to ensure its security.
Indian tax authorities have accused Nokia with evading income tax in the country for five fiscal years.
By that year, the iPad maker could have around 200 stores in India selling only its products.