About two weeks ago, the news spread like fire in the country that the Indian government is preparing to ban budget smartphones priced below Rs 12,000 in the country. In this way, there may be a plan to limit the Chinese smartphone brand in the country, as at present, most of the sub-12,000 segment is occupied by brands like Realme, Vivo, Xiaomi etc. A latest media report says that the Indian government is exploring suggestions to create a fair and open competition environment targeting Chinese vendors.
of The Economics Times accordingSuggestions include mandated manufacturing joint ventures with local firms, building a credible source list, leveraging Bureau of Indian Standards, thrust on exports and partnering with global giants to build the Indian mobile operating system. These suggestions are expected to be submitted to the Government of India in the first week of September.
Digitimes Asia quoted Business Standard’s report Told That the value addition of mobile phones manufactured by Chinese vendors in India is just 12-18%, while Chinese smartphones account for most of the Indian market. In addition, Chinese smartphone makers export far fewer phones than Apple, leaving little economic benefit for India. Therefore, India’s Ministry of Electronics and Information Technology has asked Chinese device manufacturers to push exports from India and strengthen their supply chains in the country.
At the same time, the report also cited a report by JW Insights, where it has been told that Oppo handed over mobile phone distribution rights to its subsidiary in India and has been making losses after operating in India for seven years. Indian officials believe that Oppo transferred its profits from India to China.
The report further states that Xiaomi postponed its India export plan in March 2021 due to rising domestic demand for the smartphone.