The Government of India has no plans to ban low-budget smartphones under ₹12,000, mentioned Minister of State for Electronics and IT Rajeev Chandrasekhar. This response has come in his reply to a question on the reported plan of the government to ban Chinese companies from selling sub- ₹12,000 mobile phones in India.
While neglecting the claims, Chandrasekhar also expressed that India looks forward to building domestic brands. The electronic ecosystem of India is expected to include more national tech companies in the future.
According to the reports by PTI, the state minister for Electronic and IT has stated that the government has requested the Chinese smartphone companies to increase their exports from India. He added, “Only issue that we have raised and done very transparently with some of the Chinese brands is that we have said that our expectation is that they will do more exports.”
Moreover, the minister rejected any plans to ban a particular segment from the market. He also stated, “We do not have any proposal and I am not sure where it came from.” The minister has released a report (http://icrier.org/pdf/Globalise_to_Localise.pdf) on increasing domestic value addition. The government looks forward to reaching $300 billion electronic production in the upcoming four years. Whereas the current production is estimated to be around $76 billion.
To recall, it was reported earlier this year that India is investigating Chinese smartphone maker Xiaomi’s local subsidiary for alleged illegal royalty payments to foreign entities. Xiaomi has denied any wrongdoing and has complained to the courts that India’s financial crime-fighting agency used threats of physical violence to extract confessions, according to Reuters.
The relationship between Asia’s largest and third-largest economy is nothing if not acrimonious. But the high drama conceals significant bilateral dependency on both sides—particularly in the cell phone sector. This latest spat is unlikely to derail a mutually beneficial relationship unless Indian courts take a nakedly political stance against Xiaomi.
The accusations of intimidation, which India’s ominously named Enforcement Directorate denies, have prompted China to come out publicly in support of Xiaomi. China’s foreign ministry said it hoped India will provide a nondiscriminatory business environment to its companies, carry out investigations in compliance with the law and enhance international investor confidence.
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