Indian Government Raises New Requirements for Chinese Mobile Phone Brands Operating in India!

Following Xiaomi’s investigation, India has raised new requirements: Indians should be Executives in the Local Chinese mobile phone brands

On June 14, news sources reported that the Indian government has once again requested that Chinese mobile phone brands operating in India appoint Indians to executive positions such as CEO, COO, CFO and CTO. The Economic Times from India reported on June 13 that the request was made to companies like Xiaomi, OPPO, vivo, and realme.

According to a report from India’s ABP News Network, the Indian government has also asked that Chinese mobile phone manufacturers entrust the manufacturing contract to an Indian company and allow local companies to participate in the mobile phone manufacturing process, and export through local distributors in India. The Ministry of Electronics and Information Technology held a recent meeting with manufacturers such as Xiaomi, OPPO, vivo, and realme to discuss these issues.

xiaomi india
Source: Xiaomi India

While some Chinese mobile phone manufacturers operating in India have already appointed Indian executives, such as Indian Madhav Sheth, the CEO of realme, other mobile phone manufacturers have started to recruit employees in India to better penetrate the local market. Xiaomi India, for example, has formed a local core team in India by investing in local talents and cultivating local managers, partners, and distributors.

On June 13, the Indian Enforcement Directorate (ED) issued a document stating that it had formally notified Xiaomi India, relevant executives of the company, and three banks, stating that it had illegally remitted 55.51 billion rupees.

Xiaomi responded to the publication with a statement that they “adhere to legal and compliant operations around the world and abide by relevant laws and regulations of the places where it operates.”

Furthermore, a report by research firm TechInsights showed that Samsung, vivo, and Xiaomi were the top three brands by market share in the Indian smartphone market in the first quarter of 2023, with the local market accounting for approximately 50% of the share.

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Indian Government Raises New Requirements for Chinese Mobile Phone Brands Operating in India!

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