According to The Economic Times, the government has encouraged Chinese Brands like Xiaomi, Oppo, Realme, and Vivo to have Indian executives in positions such as CEO, COO, CFO, and CTO and to partner with Indian businesses for local manufacturing at the component level.
These measures aim to boost local employment, promote technology transfer, and enhance India’s self-reliance in the mobile phone sector. By involving Indian equity partners and executives, the government hopes to strengthen indigenous capabilities and create a more inclusive and diversified mobile phone industry. This move aligns with India’s broader objectives of reducing reliance on imports, boosting domestic manufacturing, and promoting its “Make in India” initiative.
Furthermore, the government’s directive for Chinese firms to ensure legal compliance and not evade taxes indicates a desire to maintain transparency and fairness in business operations. This aligns with efforts to create a level playing field for all market participants, including foreign players. By encouraging compliance, the government aims to safeguard the interests of Indian consumers and businesses, foster healthy competition, and prevent any potential exploitation of loopholes in the system.
The decline in China’s share of India’s merchandise imports, particularly in the electronic goods sector, highlights a shift in India’s trade dynamics. The reduced import share from China in electronic goods indicates a diversification of sourcing destinations for Indian businesses, signalling a potential opportunity for other countries to increase their market presence. This diversification strategy aligns with the government’s focus on promoting self-reliance and reducing dependence on any single trading partner.
The reported decline in imports from China in sectors like fertilizers suggests efforts to diversify supply sources and reduce reliance on a single country for critical commodities. By exploring alternative sources for imports, India aims to enhance its economic resilience, reduce vulnerabilities, and strengthen its negotiating power in trade relationships.
These measures reflect India’s strategic intent to promote domestic manufacturing, encourage local participation, and diversify its trade relationships. By emphasizing the involvement of Indian equity partners and executives and urging compliance with local laws and regulations, the government seeks to create a more self-reliant and inclusive mobile phone industry while also diversifying its import sources in key sectors.
Top Chinese Brands in India
The Indian market has witnessed a significant presence of major Chinese brands in recent years, although some have faced bans and restrictions.
Xiaomi, a leading Chinese mobile brand, has gained immense popularity in India with its range of affordable to high-end smartphones and electronic accessories.
Oppo, known for its camera-focused phones, successfully captivated the youth with its marketing campaigns and partnerships with popular games like PUBG.
Motorola, though not as prominent as other Chinese brands, is making a comeback with its smartphones, accessories, and smart home devices.
Vivo and Oppo entered the Indian market with a similar camera-focused strategy and sponsored gaming events to establish dominance.
OnePlus, targeting high-end buyers, competes with Samsung and offers high-performance mobiles with impressive cameras.
Realme, known for its fast-selling new models, has experienced substantial growth and profitability, catering to the demands of young customers in search of the latest technology.
These major Chinese brands have left a lasting impact on the Indian market, catering to diverse customer preferences and reshaping the competitive landscape in the country.
Samsung and Apple Following And Supporting the Make In India Aspect
Samsung and Apple are looking to increase their electronics manufacturing in India. Samsung already established its largest mobile factory in Noida in 2018, capable of producing up to 120 million units annually.
Apple has also been expanding its presence in India by launching two stores. India plans to launch a $2 billion plan to boost local manufacturing of devices such as laptops, servers, tablets, and other electronics.
The Indian government’s “Make in India” initiative and subsidies for local manufacturing have attracted global players like Apple and Samsung.