A boost to Indian smartphone companies! India likely to ban Chinese phones under Rs 12,000

New Delhi, Aug 9: In another blow to Chinese companies, however, boost to Indian smartphone firms, the central government is reportedly considering restricting Chinese smartphone manufacturers from selling phones under Rs 12,000 or $150.

 

This development came in order to strengthen homegrown companies like Lava, and Micromax, among others. Chinese smartphone manufacturers are majorly contributing to purchasing mobiles under Rs 15,000 with some share garnered by Samsung and a few other non-Chinese companies.

 

As per the report coming from Bloomberg, the government of India is planning to push Indian smartphone makers. If the move comes into effect, it is clearly going to impact sales for brands like Xiaomi, Poco, Realme, among others -- companies that have been dominating the affordable smartphone segment for the last several years now.

 

As per a Counterpoint report, smartphones under Rs 12,000 contributed to a third of India’s sales volume for the quarter through June 2022 with Chinese companies accounting for up to 80 per cent of those shipments.

 

Many Chinese companies have struggled to do business in India due to political tensions following a border clash in 2020. India cited security concerns in banning more than 300 Chinese apps, and has also tightened rules for Chinese companies investing in India. Xiaomi and rival Vivo are being investigated by India's financial crime fighting agency for alleged illegal remittances and money laundering.