Cheap Chinese phones will be banned in India

After the ban of Chinese apps in India, preparations have been made to ban some mobile phones of Chinese smartphone companies. According to a Bloomberg report, India may soon ban such smartphones from Chinese smartphone companies whose price is less than 12,000 rupees ($ 150). Chinese companies are at the forefront of the low-budget phone segment in the world. The source says that the move is being planned to encourage local manufacturers by moving them out of here.
This decision will take the biggest blow to Xiaomi, as it is the number 1 company in selling budget smartphones. After this, the market of Transsion, which makes cheap phones like Itel, Tecno and Infinix, may also be affected by this decision. Significantly, the arrival of Chinese companies had a bad effect on the sales of smartphones by domestic companies like Lava and Micromax.
Due to this information being sensitive, the reporter has not revealed his identity.
It has been told in the report that due to the high prices of phones of Apple and Samsung company, they will not be affected. Although Xiaomi, Realme and Transsion were asked on this report, they did not give any answer. The spokespersons of India's IT ministry also did not respond to Bloomberg News inquiries.
If exiting from the entry-level market in India, Xiaomi and other companies with it will suffer a big loss. These companies have made a lot of growth in India after the lockdown in China. Due to Corona in China, the demand for phones was almost over.
According to market-tracking Counterpoint, smartphones under Rs 12,000 ($150) accounted for a third in the quarter to June 2022. In this, Chinese smartphone companies accounted for 80%.
On July 5, in the money laundering case against Vivo, the ED raided 44 places in several states in connection with the money laundering probe against Vivo and its associated firms. It was only after the raid that the company's directors Zhengshen Ou and Zhang Jie fled the country.
Chinese mobile companies were accused of sending money out of the country in the name of royalty and tax evasion. In April, Chinese mobile company Xiaomi's assets worth Rs 5,551 crore were attached for FEMA violations. The company was accused of illegally sending its earnings out of India.
India had started putting pressure on Chinese companies after more than 12 Indian soldiers were martyred in the clashes in Doklam in 2020. Since then the government has banned over 300 Chinese apps including Tencent Holdings Ltd's WeChat and ByteDance Ltd's TikTok. Recently the government has also banned the BGMI app.