- The companies have been asked to appoint Indian contract manufacturers and have local distributors.
- The smartphone makers have also been warned against tax evasion and instructed to follow legal compliance.
The Indian government has reportedly asked Chinese mobile phone manufacturers to induct Indian equity partners in their local operations and appoint Indian executives in key roles.
The directives were issued to Chinese firms such as Xiaomi, Oppo, Realme and Vivo as well as the India Cellular and Electronics Association (ICEA) at recent meetings held by the ministry of electronics and information technology (MeitY). The Economic Times reported the news citing three executives who attended meetings at which the matter was conveyed.
The companies have been asked to appoint Indian contract manufacturers, increase local manufacturing down to the component level through joint ventures with Indian businesses, expand exports from the country and have local distributors.
The smartphone makers have also been warned against tax evasion and instructed to follow legal compliance.
The meetings come after several Chinese smartphone manufacturers are under scrutiny for tax evasion and alleged illegal remittances worth rupees thousands of crores.
China’s share in India’s merchandise imports have declined to 13.79% in 2022-23 from 15.43% in 2021-22, as per the Commerce Ministry. The imports of electronic goods from China have seen a decline of around $2 billion in 2022-23 (April-February) compared to the same period last year.
