India may ban Chinese phones under INR 12,000: Report

In another blow to Chinese companies, the Indian government is reportedly considering banning Chinese smartphone makers from selling phones under INR 12,000 or $150. The idea is probably to push domestic companies like Lava, and Micromax. Chinese smartphone makers currently dominate the budget smartphone segment or the segment priced below INR 15,000 with some share garnered by Samsung and a few other non-Chinese companies.

According to a Bloomberg report, “the country seeks to restrict Chinese smartphone makers from selling devices cheaper than INR 12,000 (USD 150) to kick-start its faltering domestic industry”. Reports said the move could push Chinese smartphone makers out of the lower segment of the world`s second-biggest mobile market.

Popular Chinese Mobile Brands in India

Xiaomi – Redmi – Mi
OnePlus 1+
Vivo
Oppo
Realme
Lenovo (Motorola)
Meizu
Coolpad
Huawei
Tecno Mobile

According to a Bloomberg article, the Indian government intends to encourage domestic smartphone manufacturers. If the decision is made, it will undoubtedly affect the sales of companies that have dominated the market for affordable smartphones for many years, including Xiaomi, Poco, and Realme, among others. According to Counterpoint Research, shipments of phones priced less than INR 12,000 accounted for up to 80% of all sales in India for the three-month period ending in June 2022.

China and India have been engaged in conflict for a while now. Recently, certain Chinese smartphone manufacturers have come under fire. In the past few months, some Chinese firms, including Vivo, Xiaomi, and Oppo were charged by the ED over alleged tax evasion. In fact, recently the Enforcement Directorate had sealed Vivo’s bank accounts in a money laundering case. The company later urged the authorities to unfreeze the bank accounts so that the company could continue doing business in the country.

Apart from smartphone companies, the government recently ordered Google and Apple to remove the Battleground Mobile India (BGMI) app from Google Play and the Apple App Store. In India, the BGMI mobile game is no longer available for download.Neither the government nor the game creator has explained why the mobile game has been blocked in the country.

It should be noted that the Indian government is yet to announce official details on whether they plan to ban Chinese phone makers from selling phones under INR 12,000 and if yes, how do they plan to initiate the move?