Chinese companies will not be able to make smartphones under Rs 12,000.

HIGHLIGHTS

• The Indian government can fix the limit for Chinese phone production.
• There have been raids on the locations of Chinese companies.

Product limits could be set for Chinese mobile companies. China's phone makers can be banned from making phones from Rs 10,000 to Rs 12,000 so that domestic mobile companies can be encouraged. 

According to sources, Chinese mobile companies are not adopting a transparent approach in manufacturing smartphones, causing revenue loss to the government, and domestic phone makers are unable to compete with them.

Sources say that such a proposal is still in the initial stage. This decision of the government has dealt a big blow to companies like Xiaomi, Vivo, Oppo, Poco, Redmi, and Realme. However, no official statement has yet come from the government or Chinese company. In the last year, Indian investigative agencies have raided the locations of prominent companies like Xiaomi, Oppo, and Vivo in India. The activities of these companies have been found suspicious, which is being investigated further. According to Counterpoint's report, smartphones under Rs 12,000 accounted for a third of India's sales, and Chinese companies own 80% of shipments. Companies like Lava and Micromax can benefit a lot by banning Chinese companies in this segment. Before the entry of Chinese smartphones into India, these two companies held the largest share domestically. 

This proposal will not affect the production of Apple and Samsung. Samsung shares a small segment in making phones under Rs 12,000. While Samsung can continuously offer its smartphones in the mid-range and entry-level, Apple can also move ahead in the mid-range.

source