Few days back, there was a report which claimed the Indian government could stop Chinese brands from selling smartphones under Rs 12,000 in the country. Companies like Xiaomi, Realme, Vivo and Oppo come in this segment and would have faced massive issues running their business in the country. But now the Government has finally clarified that it has no plans to impose such bans on these companies.
Responding to queries, Rajeev Chandrasekhar, the Union Minister of State for Electronics and Information Technology said, “There’s no such proposal. It’s the government’s obligation and duty to build Indian brands. If due to unfair trade practices, there’s an exclusion of Indian brands, we’ll intervene and resolve it.”
https://www.youtube.com/watch?v=/p4vQo9oyF4c
The report from Bloomberg suggested that banning Chinese brands in this price bracket will allow Indian brands to reignite their focus on local production in India. But Chandrasekhar refuted such claims and suggested that the Government wants these Chinese brands to set up shop in India and export their products to other countries from here.
“We are asking foreign brands to choose India as a global base and export from here. The PM’s vision is of a robust, vibrant, and innovative electronics ecosystem consisting of foreign majors and viable Indian brands,” he added.
From these statements it is clear that none of the Chinese brands face operational issues in India, but recent events suggest the Ministry is closely monitoring their businesses and how they manage their revenues earned in the country. The likes of Karbonn, Lava and Micromax have been unable to compete with the products from Chinese brands like Xiaomi, Realme and Oppo.
They have dropped down the market share charts in the past few years, not even making it to the top 10 in India. It is believed that the government wants to give them a fair chance to rekindle their business but we are yet to see that materialise.
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