The Central government of India has devised a plan for Chinese mobile companies, including Xiaomi, Oppo, Realme, and Vivo, to conduct business in India. As per a report by the Economic Times, the government has requested these companies to involve Indian equity partners in their local operations. Additionally, Chinese mobile handset firms have been directed to appoint Indian executives in key positions such as CEOs, CFOs, CTOs, and more.
The government’s directives also include the appointment of Indian contract manufacturers, the expansion of local manufacturing to the component level through joint ventures with Indian businesses, increased exports from India, and the hiring of local distributors. The Chinese firms have been cautioned against tax evasion and have been instructed to adhere to legal compliance.
These new rules for Chinese firms were communicated by the Ministry of Electronics and Information Technology (MeitY) during discussions with Chinese mobile companies and the India Cellular and Electronics Association (ICEA). The meeting took place amidst the scrutiny faced by several Chinese smartphone manufacturers for tax evasion and alleged illegal remittances.
The Indian government aims to encourage these companies to leverage local talent and establish India as their export and production hub. The recent approval of the Production Linked Incentive (PLI) Scheme for IT Hardware by the Centre further demonstrates its efforts to attract investments and enhance the capacity and capability of Indian companies.
The PLI scheme has a budgetary allocation of ₹17,000 crores for a duration of six years. The government has highlighted the increased investment in the telecom sector, with ₹1600 crores being invested compared to a target of ₹900 crores.
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