Good news for Indian smartphone companies! India may ban Chinese phones under Rs 12,000

New Delhi: The Indian government is apparently considering prohibiting Chinese smartphone manufacturers from selling phones for less than Rs 12,000, which would be another setback for Chinese businesses. The plan may be to promote domestic businesses like Lava and Micromax, among others. Samsung and a few other non-Chinese companies have gained some market share in the sub-Rs 15,000 smartphone segment, which is currently dominated by Chinese smartphone manufacturers.

According to a Bloomberg report, the Indian government intends to encourage domestic smartphone manufacturers. If the decision is made, it would undoubtedly affect sales for businesses that have dominated the market for inexpensive smartphones for a number of years, including Xiaomi, Poco, and Realme, among others. According to Counterpoint research, shipments of smartphones priced less than Rs 12,000 accounted for up to 80% of all sales in India for the three-month period ending in June 2022.

China and India have been engaged in conflict for a while now. Recently, certain Chinese smartphone manufacturers have come under fire. The ED has recently brought charges against several Chinese companies, including Xiaomi, Vivo, and Oppo, for alleged tax cheating. In a recent money laundering instance, the Enforcement Directorate actually froze Vivo's bank accounts. Later, the corporation pleaded with the authorities to unfreeze the bank accounts so that it could carry on operations in the nation.

It should be emphasised that the Indian government has yet to publish official details on whether they intend to prohibit Chinese phone manufacturers from selling phones for less than Rs 12,000, and if so, how they intend to implement the prohibition.

Aside from smartphone companies, the Indian government is interested in Chinese apps. The government recently ordered Google and Apple to remove the Battlegrounds Mobile India (BGMI) apps, often known as the Indian version of PUBG Mobile, from the Google Play and Apple App stores. In India, the BGMI mobile game is no longer accessible for download. Neither the government nor the game creator have explained why the mobile game has been blocked in the country. This follows the Indian government's 2020 ban on hundreds of Chinese apps, including TikTok, PUBG Mobile, and others.