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In an effort to boost its faltering domestic economy, India wants to ban Chinese smartphone manufacturers from selling their products for less than 12,000 rupees ($150). According to market research firm Counterpoint, sales of smartphones priced under Rs. 12000 accounted for up to 80% of all sales in India for the three months that ended in June 2022.
Why Does India Wants To Ban Chinese Smartphone Companies?
Restriction from India’s entry-level market would be detrimental to Xiaomi and its rivals, who have relied on India more and more recently to fuel growth as their domestic market has been subjected to a number of COVID-19 lockdowns that have severely hampered consumption. The initiative, according to those in the know, aims to force Chinese firms out of the lower segment of the world’s second-largest mobile market.
They asserted, while requesting anonymity because the topic was sensitive, that it is consistent with growing concerns that large corporations like Xiaomi, Realme, and Transsion are undermining domestic manufacturers.
Apple Inc. and maybe even Samsung Electronics Co., which charge more for their phones, shouldn’t be hurt by the change. India put more pressure on Chinese firms in the summer of 2020. As relations between the two countries get worse, it has banned over 300 apps, including WeChat from Tencent Holdings Ltd. and TikTok from ByteDance Ltd.
Phones That could Be Banned In India
Before cheap smartphones with lots of features from a neighboring country shook up the market, Lava and MicroMax made up just under half of India’s smartphone sales. The Indian government has already looked at the accounts of Xiaomi, OPPO, and Vivo, which led to tax requests and accusations of money laundering.
Equipment from Huawei and ZTE has been de facto outlawed by the government. Despite the lack of a formal ban, mobile providers are looking to purchase alternatives to Chinese networking hardware.