- The Indian government is said to be planning to restrict Chinese smartphone makers from the budget smartphone segment.
- A report revealed that the government intends to restrict Chinese companies in denominations of less than 12,000 rupees.
- The decision will affect companies such as:
XiaomiAnd the kingdomthat dominates the budget segment.
In a blow to Chinese smartphone makers, the Indian government is said to be planning to restrict Chinese companies from the budget smartphone segment, banning them from selling devices under Rs 12,000 in the country.
According to a report by Bloomberg, the Indian government plans to restrict Chinese smartphone makers such as Xiaomi, Realme, and
The move comes after concerns were raised about “big brands like Realme undermining local manufacturers,” the report said, citing people familiar with the matter.
According to a Counterpoint Research report, smartphones under $12,000 accounted for a quarter of smartphone shipments in India last quarter and 80% of this comes from Chinese smartphone makers like Xiaomi, Realme, and Vivo.
The move will benefit companies like Micromax and Lava that have not been able to offer similar features as Chinese smartphone makers. However, this could be bad news for consumers as they will likely have to pay a higher price or settle with subsidiary devices due to a lack of competition.
Chinese smartphone makers have been under the scanner for quite some time now. Finance Minister Nirmala Sitharaman recently revealed that the government is investigating Xiaomi, Oppo and Vivo.
Xiaomi was under ED scrutiny after the agency alleged that the company illegally transferred Rs 5,551.27 crore to three foreign entities. Oppo has been subject to a Revenue Intelligence Administration (DRI) scrutiny for tariff evasion. The ED also claimed that Vivo had funneled nearly $8 billion to its parent company in China over five years to evade taxes.
Finance Minister Nirmala Sitharaman has revealed that the government is investigating several Chinese smartphone makers for tax evasion
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