India will ban the sale of Chinese phones priced below ₹12000 to boost domestic industry: Report

 India will ban the sale of Chinese phones priced below ₹12000 to boost domestic industry: Report Chinese companies own up to 80% of these phones.

Chinese smartphone makers will not be able to sell phones priced at Rs 12,000 and below in India, barring their reach in India's entry-level smartphone market segment, which drives most of their sales.

The decision is aimed at pushing the Chinese smartphone giant out of the bottom of the world's second-largest smartphone market to boost India's faltering domestic industry. Chinese smartphone makers have relied exclusively on India for growth over the past 2 years as their domestic market has seen a drop in consumption due to the COVID-19 lockdown.

According to market tracker Counterpoint, smartphones under $150 contributed to a third of India's sales volume for the quarter as of June 2022, with Chinese companies contributing up to 80%.

This policy may have an adverse reaction on Xiaomi, Realme and other such Chinese companies. “Xiaomi smartphone shipments may decline by 11-14% or 20-25 million units per annum, with a 4-5% decrease in sales, we calculate, if India sells China-made mobile phones under $150. prohibits the retail sale of According to analysts at IDC, it has a 25% share in India, which is Xiaomi's most important overseas market, with 66% of its smartphones priced under $150.

Chinese smartphone makers are already under intense financial scrutiny by the Indian government due to allegations of tax evasion and money laundering. Communications equipment made by Chinese firms such as ZTE and Huawei has already been banned from the Indian market, although there is no official government policy as such in an unofficial way.

Other foreign manufacturers such as Apple and Samsung will not be affected by this decision. Domestic companies like Lava and Micromax made up more than half of India's smartphone market, before Chinese companies disrupted the market with cheap but feature-rich devices.

Chinese smartphone players now sell the majority of devices in India, but their market dominance has not been "based on free and fair competition".