Will India really ban Chinese Smartphones under Rs 12,000? Authorities clear the air

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A few days ago, a report started going around that claimed that the Indian government had decided to ban Chinese manufacturers and smartphone brands to sell their products under the price of Rs 12,000. 

Will India really ban Chinese Smartphones under Rs 12,000_ Authorities clear the air (1)

Several people close to the matter claimed that a proposal similar to this was being discussed, in order to boost Indian phone manufacturers

and give them an opportunity to recapture some of the market share that they have lost.

Even Beijing reacted to the news, with the spokesperson for the Chinese foreign ministry, Wang Wenbin, saying that the trade and economic cooperation between China and India needs to remain mutually beneficial in nature.

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The latest report that has surfaced about the matter though, claims that the government is not planning any such ban.

The initial reports suggested that the move was intended to force Chinese giants out of the budget phone market in India, which happens to be the second-largest mobile market in the world. Additionally, the decision was said to have coincided with growing worries about high-volume brands like Realme and Transsion undercutting regional suppliers.

Chinese-made smartphones have dominated the Indian smartphone market, with Xiaomi capturing a major chunk of the market in Q2 2022. 

Vivo’s shipments grew by 17.4 per cent to 5.9 million units, while Realme’s shipments increased by 23.7 per cent to 6.1 million units, helping it gain 17.5 per cent market share. With some share gained by Samsung and a few other non-Chinese companies, Chinese smartphone manufacturers currently dominate the low-cost smartphone segment, or the under Rs 15,000 price segment.

Earlier this year, the Indian government started investigating Chinese telecommunications companies like Oppo, Vivo, and Xiaomi, for alleged money laundering, customs and tax evasions. Following a thorough investigation, the ED recently filed charges against several Chinese companies, including Xiaomi, Vivo, and Oppo, for alleged tax evasion as well.

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