Buoyed by PM Narendra Modi's 'Make in India' initiative, Japanese tech giant Sony Corp plans to resume manufacturing its televisions in the country after over a decade.

For this, the company has reached an agreement with Taiwan-based contract manufacturer Foxconn to manufacture its "Bravia line of televisions" at the latter's facility near Chennai.

Sony is also weighing options to start manufacturing smartphones in India and could "eventually" set up its own facility in the country, said Sony India managing director Kenichiro Hibi.

"The government's 'Make in India' policy and the growing importance of India for Sony worldwide has accelerated our decision to manufacture in India once again," Hibi told ET. "Local production will help us to be more competitive, lower costs and allow faster turnaround time to launch newer models."

With India being its fourth biggest market globally, Sony India has recorded sales of Rs 10,600 crore in 2014-15. Televisions and smartphones accounted for 40% of its overall revenues each.

Initially, Sony plans to produce two 43-inch television models running Google's Android operating system at Sriperumbudur plant of Foxconn. It is also expected to start manufacturing 22-43 inch screen televisions in the coming days.

"While at present, all production will be for the Indian market, we may also start exports," Hibi explained. "If this turns out to be successful, Sony may evaluate setting up its own plant in India."

Sony had halted its manufacturing operations in 2014, after closing down its plant in Haryana that mainly produced music systems and home theatres. The company also used the facility to manufacture televisions.

With a market share of 25% in India's Rs 20,000-crore flat panel television market, Sony is currently facing a stiff competition with Samsung to remain as dominant player. Samsung and LG have already set up their manufacturing plants in India.

Recently, Chinese smartphone makers such as Xiaomi and Lenovo too announced plans to manufacture handsets in India. Taiwanese contract manufacturers Foxconn and Quanta Computer have also come up with plans of setting up manufacturing plants in the country.