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No ban on Chinese phones below Rs 12,000 on government's mind

A Bloomberg report, earlier this month, stated that India was seeking to kickstart the domestic industry by halting the production of Chinese mobile phones.

August 30, 2022 / 06:44 AM IST
A ban on below-Rs 12k Chinese phones would have adversely affected Xiaomi and its peers (Representative image: Reuters))

A ban on below-Rs 12k Chinese phones would have adversely affected Xiaomi and its peers (Representative image: Reuters))

There is no proposal under consideration to ban Chinese smartphones priced below Rs 12,000, government sources told CNBC TV18 on August 29, days after reports said that New Delhi was mulling over measures to oust cheaper made-in-China phones from the domestic market.

The government "will not work towards the exclusion of foreign brands", a person who is privy to the development told the news channel.

Measures, however, would be undertaken to "ensure space for Indian companies and Indian suppliers".

The government's vision is of a robust and innovative electronics sector, with space for India brands, the source said, adding, "Wherever we feel that Indian brands are being crowded out due to unfair practices we will intervene."

The clarification from the government, as reported by CNBC TV18, comes around three weeks after a Bloomberg report said that the Indian government is seeking to restrict Chinese smartphone makers from dominating the below-Rs 12,000 market segment.

Smartphones under Rs 12,000 or $150 accounted for one-third of the country’s total sales of smartphones during the April-June quarter, and Chinese companies contributed to nearly 80 percent of those shipments, according to market tracker Counterpoint.

A policy to exclude the Chinese smartphone brands from entering the cheaper devices segment would have dealt a major blow to companies like Xiaomi Corp and its peers.
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Moneycontrol News
first published: Aug 29, 2022 07:01 pm
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