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India has no plans to limit Chinese phone makers below $150

India does not intend to prohibit Chinese smartphone manufacturers from operating within the sub-$150 price bracket, a key minister stated Monday. This relief is provided to scores of multinational giants in the second largest handset market in the world.

Rajeev Chandrasekhar (India’s junior IT Minister) stated at a press conference, that while India feels an obligation ensure local businesses thrive in the smartphone ecosystem, “there is no such proposal within our ministry,” he said about the rumored plan.

 

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Chandrasekhar’s comment contradicts an Bloomberg News report that stated earlier this month, that India planned to restrict Chinese smartphone manufacturers in the affordable price segments.

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Xiaomi executives, who hold the Indian market’s top spot, were also puzzled by the proposal. They stated in their quarterly earnings call that they had not heard from the Indian government.

According to Counterpoint, Indian smartphone manufacturers are dominated by Chinese companies.

Micromax, Lava, and Karbonn, local smartphone manufacturers, ran high-margin business for more than a decade in India selling handsets that they obtained from Chinese phonemakers under a whitelabel agreement. However, things changed when several Chinese companies entered India. They began selling better handsets at lower prices and pushed out Indian manufacturers’ inferior offerings.

As New Delhi tightens its rules after a clash with China in 2020, many Chinese companies are having difficulty entering India or continuing their businesses. Since then, India has banned over 300 Chinese apps like TikTok and UC Browser. Tencent-backed PUBG was also banned.