The Finnish handset maker, whichin the global market, said that it and its key suppliers may invest as much as $100 million to $150 million in the factory over the next four years. Nokia noted, however, that a final investment decision will not be made until early next year.
The facility will be Nokia's 10th worldwide and its third in Asia, and it could eventually employ 2,000 workers. Nokia's other Asian facilities are in China and South Korea.
"India's position at the heart of a rapidly growing mobile communications region makes it an attractive option for establishing our new manufacturing facility," Nokia President Pekka Ala-Pietila, who was visiting India this week, said in a statement.
India currently has more than 43 million mobile phone subscribers. The market has been growing at a rate of over 50 percent in the last few years.
Market researchers also foresee a major boom in India's market for mobile games. According to In-Stat/MDR, theis set to go from the mere $26 million expected this year to $336 million by 2009. This summer, Nokia debuted its first game device in India (the ).
Nokia is the second high-profile global corporation to announce a venture in India this week. On Tuesday, Microsoft Researchin Bangalore by January.