Government Introduces Fresh Regulations For Chinese Mobile Companies: Report

The Indian government has devised a plan for Chinese mobile companies to conduct business in India. As per a report from a leading media house, Xiaomi, Oppo, Realme, and Vivo have been requested by the government to include Indian equity partners in their local operations. 

Additionally, the government has instructed Chinese mobile handset companies to appoint Indian executives for key positions such as CEOs, CFOs, CTOs, and others. The publication further noted that the government has mandated the Chinese mobile firms to engage Indian contract manufacturers, expand local manufacturing to the component level through joint ventures with Indian companies, increase exports from India, and exclusively hire local distributors. They have also been cautioned against tax evasion and instructed to comply with legal requirements. 

The Ministry of Electronics and Information Technology (MeitY) directed the new regulations for Chinese firms, and the government engaged with both Chinese mobile firms and the India Cellular and Electronics Association (ICEA). 

This meeting took place in light of ongoing scrutiny faced by various Chinese smartphone manufacturers for allegations of tax evasion and illegal remittances amounting to thousands of crores. 

The government aims for these companies to tap into the local talent pool and establish India as their base for exports and production. 

Last month, the government approved the Production Linked Incentive (PLI) Scheme for IT Hardware to attract investments and enhance the capacity and capabilities of Indian companies. 

The PLI scheme has a budgetary allocation of Rs 17,000 crores for a duration of six years. 

According to the government, investments in the telecom sector have witnessed growth. “Rs 1600 crore of investment took place in the field when the target was only Rs 900 crores,” the Central government stated last month.