NEW DELHI: Xiaomi said it was open to moving its servers to India subject to its cloud service provider partner setting up base in the country, amid increased government efforts to protect user data on mobile phones.“All our servers are sitting on AWS Amazon Web Services ) in Singapore and US. If AWS moves to India, we would be happy to work with them," Manu Kumar Jain, VP Xiaomi and managing director of India operations, told ET, becoming the first overseas company to openly offer to move its servers to India.Handset companies typically don’t store data on their own servers but instead lease space on third party cloud service providers such as AWS, Microsoft and Google. While AWS and Microsoft have already set up their centres in India, Google has also announced setting up the same in the country to cater to a larger number of customers, especially those in the government or financial services industry since regulations in those sectors don’t permit data to be transmitted outside the country."We last evaluated this about 2-3 years ago when we were moving our servers (from China), at that time there was no significant presence (of AWS) and it was much more difficult to have it here,” Jain explained, when asked whether the company would move or add its servers in India, which appears to be the larger aim for the government intending to secure data.Jain did not say whether the company was already in talks with Amazon to move its servers to India.He though added that from an internet speed perspective, the connectivity between India and Singapore was one of the best.“We moved and thought it was pretty good. But if someone, AWS or equivalent, were to set up servers here (in India), we would be happy to work with them," he added.The company, which sells about 4-5 million smartphones a quarter, said that its devices were super-secure, no data was taken without use consent and the data that is taken is ‘encrypted to the highest degree’ and that it cannot be decrypted even if the data is stolen.Xiaomi’s views come at a time when the government is taking up security of phones with all companies including Apple and Samsung, and scrutinising protection levels that all handset makers – a large majority of which are Chinese – were providing in India. Another Chinese brand OnePlus has also said that it is prepared to respond to India’s data security and privacy concerns, since it sells the same smartphones in the US and Europe, where these concerns are already addressed."Currently, we have not received direct request or requirement to set up servers or cloud storage in India. We are trying to get more clarity on that," OnePlus CEO Peter Lau told ET.Amid the recent India-China standoff at Dokalam – which has since been resolved – the IT and electronics ministry has asked over 30 smartphone companies for protocols used by them to ensure the security of mobile phones in the country. While the government is evaluating responses on security preparedness, it may well ask all those selling devices in India to have locally based servers.Officials in the ministry said while the issue of apps sweeping up excessive user data was worrying, the broader issue remained that of the security of information that could be going to third parties outside the country, especially to China.India is the largest market for Xiaomi globally, which is where the No 2 smartphone player with a 17.2% share as of August, launched MiA1 – a global first based on the renewed version of Google’s Android One platform on Tuesday. The new Android One model is the first time that Xiaomi is offering stock Android as an operating system besides its own MiUI, and will subsequently be launched in other global markets.Jain expects the dual-camera device, priced at Rs 14,999, to take consumers away from the premium segment, thus disrupting the segment. The company would therefore increase manufacturing capacity in the country to meet local demand of the new device, among other models. “We’re expanding capacity of existing plants and working on the 3rd plant as well.” Foxconn Corp’s India unit makes the company’s phones locally.Having clocked more than $1 billion in revenue last December, and recorded a 328% increase in revenue in the first half 2017, compared to the same period last year, Xiaomi India would easily cross $2 billion mark for this year, ending December 2017.However, Jain cautioned that while the growth will continue, the percentage growth may appear to slow due to the large base of 4-5 million units compared to earlier quarters, when the company would sell 1-2 million devices.“As and when your volumes become bigger, to have the same growth will be tough. We will continue to grow but as your base becomes bigger and bigger, the percentage of growth will come down a bit.”Xiaomi’s offline sales now make up more than 20% of sales in India as of July, the rest coming from online where it has a 48% share of the market. Its application to open its own operated and branded stores is still pending with the government, but the company said things were moving forward. In the meantime, it plans to open more Mi Home offline stores, about 200 in the next two years, in a bit to increase its target a larger market.