New policy of Modi government: Chinese companies Rs. 12,000 cannot sell smartphones cheaper

New Delhi, Dated 08 August 2022, Monday

Not sold in India Rs. Smartphones cheaper than 12,000: Modi govt giving people a chance to protect Chinese companies

In India, the world's fastest growing smartphone market, the Modi government is going to implement a new policy to crack down on Chinese companies and provide incentives and market opportunities to local companies in the country. According to the report, the Center has now spent Rs. 12,000 may ban the sale of Chinese smartphones in India.

However, the voice against this policy of the government has been rising since the beginning. Despite various incentives and concessions in the name of Make India, Indian domestic companies have not been able to capture the local smartphone market. Due to the intense competition from Chinese companies, many Indian companies are finding it difficult to survive, so now to promote Make in India in the smartphone market, Rs. Chinese phones cheaper than 12,000 may be banned.

According to the report, India has given Chinese smartphone manufacturers 150 US dollars i.e. Rs. A policy is in place to ban selling models cheaper than 12,000. Interestingly, this list of Chinese companies may also include brands including Xiaomi Corp, which also manufactures to some extent in India.


Dominance of Chinese companies:

The government's plan is to push the Chinese giants out of the cheap and low-budget segment of the world's second-largest mobile market. According to a recent report by market tracker Counterpoint, in the quarter to June 2022, smartphones priced below $150 contributed to a third of India's total smartphone market sales volume, with Chinese companies accounting for 80%. The concern of high-volume brands like Xiaomi, Realme, Transsion, Oppo may increase with this policy of Modi government.

If the government enforces the ban, Xiaomi's smartphone shipments could drop by 11-14%, or 2 to 2.5 million units a year, while sales could drop by 4-5%. India is Xiaomi's most important overseas market with a 25% share of the Indian smartphone market, with 66% of its smartphones priced below $150.

Even if the central government implements this new policy, Apple Inc and Samsung Electronics will not be affected as their phone prices are above this set budget.

Also look at tax evasion:

Apart from this, Chinese companies are in the eyes of the Indian government due to allegations of tax evasion. Chinese companies Xiaomi and rivals Oppo and Vivo operating in the country have been accused of laundering money in the name of royalty and others. The government earlier Huawei Technologies Co. and ZTE Corp. Telecom equipment was banned.

Finally, to the public:

This policy of Modi government is good for the country and local companies as a whole, but despite continuous efforts and concessions for the past few years, local companies are not able to survive in the market and compete with Chinese companies, what is the fault of the public?

Currently, the government is making money by imposing high taxes on cheap imported phones, but if they impose restrictions on these Chinese phones, then the public will pay the price.

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