To support domestic companies and shock cheap Chinese mobile companies, Chinese mobile phones priced at $ 150 or less i.e. Rs 12000 or less can be banned.
Since the craze of cheap Chinese mobile phones has increased in the country, domestic mobile companies are suffering a lot since then. Now the Indian government is preparing to give a blow to such Chinese companies. To support domestic companies and to shock cheap Chinese mobile companies, Chinese mobile phones priced at $ 150 or less i.e. Rs 12000 or less can be banned (Ban on Chinese Mobile Phones).
Chinese brands caused damage to domestic companies
According to the news of Reuters, this move can be a big blow for Chinese companies like Xiaomi. In fact, the Chinese brand has significantly reduced the domestic smartphone makers. Because of which the government has to take this step. An international media report, citing people familiar with the matter, said it was unclear whether the Indian government would announce a policy to ban Chinese smartphone makers or use unofficial channels.
The market for Lava and Micromax shrank in this way
Chinese firms have a large share of entry-level smartphones which are quite popular among users moving away from traditional devices in India, which is the world’s second largest mobile market. Indian firms such as Lava and Micromax quickly gained popularity after their launch a decade ago, but have since lost market share due to stiff competition from Chinese players.
Business difficult in India after the border dispute of 2020
Political tensions after border clashes in 2020 have caused many Chinese companies to struggle to do business in India. India cited security concerns in banning more than 300 Chinese apps, and has also tightened rules for Chinese companies investing in India. Xiaomi and rival Vivo are being investigated by India’s financial crime-fighting agency for alleged illegal remittances and money laundering. Both deny any wrongdoing.
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