Nokia did not disclose how many workers at the plant in Sriperumbudur in Tamil Nadu tested positive, but a source familiar with the matter said they were at least 42.
The company said it had already implemented measures such as social distancing and changes to canteen facilities.
The factory had begun operations in a restricted manner over the past few weeks, Nokia said in a statement, after India eased the world’s biggest lockdown to kick-start its Economy which has been pummelled by the shutdown.
“We hope to resume operations soon at a restricted level with skeletal staff strength,” Nokia added.
Chinese Smartphone maker OPPO last week suspended operations at a recently re-opened plant on the outskirts of New Delhi after at least nine workers tested positive for the novel coronavirus.
India on Tuesday recorded a total of 145,380 Coronavirus infections and a death toll of 4,167, comparatively low figures for the world’s second-most populous country.