NEW DELHI, India: Google is preparing to open its first physical retail stores outside the U.S., with locations in India likely to be finalized soon, according to sources familiar with the matter.

The tech giant sees India as a key growth market, having pledged a US$10 billion investment in the country. While Google currently operates just five physical stores in the U.S., the move into India is expected to help it compete with Apple by showcasing its Pixel smartphones, watches, and earbuds in premium retail spaces.

Three sources confirmed that Google is in the advanced stages of selecting sites in or around New Delhi and Mumbai, with store sizes expected to be around 15,000 square feet. The stores are projected to open within the next six months, though the timeline could shift. Bengaluru was also considered, but the capital and financial hub emerged as frontrunners.

"The idea is to compete with Apple ... especially to target the luxury segment," said one source, adding that Google may expand with more stores if the first locations prove successful.

Apple has taken a similar approach in India, launching its first company-run stores in Mumbai and New Delhi in 2023. Google's entry into retail is expected to help boost sales of its Pixel smartphones, which range from around $370 to $2,000 in India. However, Apple remains dominant in the premium smartphone market, holding a 55 percent share in 2024 compared to Google's 2 percent, according to Counterpoint Research.

Google currently sells its devices in India through authorized retailers, but a dedicated retail presence could help it attract high-end buyers and strengthen its brand. The company has also begun manufacturing Pixel phones in India, aligning with the government's push for local production.

A source indicated that while Google is committed to executing its store expansion, it still needs to navigate regulatory and compliance processes before finalizing the rollout.

One potential store location being considered is Gurugram, a major corporate and retail hub near New Delhi. It is home to offices for companies like Uber and Meta, as well as international brands such as Uniqlo.

Meanwhile, Google continues to face legal and regulatory challenges in India, including antitrust cases related to its in-app billing system and alleged abuse of market dominance in smart TVs. Additionally, the company's India head of public policy recently resigned, marking the second high-profile departure from the role in two years.