Bloomberg reported on Aug. 8 that India is looking to ban Chinese made smartphones from its market that have a price tag of less than $150.

India is driven to ban Chinese players from the cheap smartphone market and protect domestic producers from competition. Unidentified sources said there had been worries that high-volume companies like Realme and Transsion are threats to local makers.

The great majority of smartphones sold in India are by Chinese companies. But India’s junior tech minister told the Business Standard newspaper that their market domination is not based on free and fair competition.

According to industry researcher Counterpoint, shipments of smartphones priced under $150 accounted for up to 80% of the sales volume in India during the second quarter of 2022.

Bloomberg said India’s local makers, such as Lava and MicroMax, used to possess slightly less than half of the country’s smartphone sales before newcomers from China upset the market with affordable and feature-rich offers.

The measure is slated to substantially affect Chinese firms such as Xiaomi substantially. India is the second-largest mobile consumer worldwide, standing only behind China. Its market has been their life preserver while China is caught up in its bigoted COVID battle and is taking hits in consumer spending. 

While gauging the restriction, the sources said the Indian government still requests that Chinese executives establish local supply chains, distribution networks, and export from India. This suggests New Delhi still has interest in Chinese investments.

The people are nonetheless unsure if Prime Minister Narendra Modi’s administration will make any announcements or take unofficial measures to express a fondness for Chinese businesses.

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