The Indian Central government has devised a plan to facilitate the business operations of Chinese mobile companies within the country. As per a report from the Economic Times, the government has urged Xiaomi, Oppo, Realme, and Vivo to involve Indian equity partners in their local operations.
Additionally, the government has instructed these Chinese mobile handset companies to appoint Indian executives for key positions like CEOs, CFOs, CTOs, and more. The government has emphasized the appointment of Indian contract manufacturers, the expansion of local manufacturing at the component level through joint ventures with Indian businesses, increased exports from India, and the hiring of local distributors.
Furthermore, the Chinese mobile firms have been cautioned against tax evasion and instructed to adhere to legal compliance.
These new regulations for Chinese firms were issued by the Ministry of Electronics and Information Technology (MeitY), and the government communicated them to both the Chinese mobile firms and the India Cellular and Electronics Association (ICEA).
This meeting took place as several Chinese smartphone manufacturers are currently facing scrutiny for alleged tax evasion and illegal remittances amounting to thousands of crores in Indian currency.
The objective of the Centre is for these companies to capitalize on local talent and establish India as their base for exports and production.
Last month, the Centre approved the Production Linked Incentive (PLI) Scheme for IT Hardware, aiming to attract investments and enhance the capabilities of Indian companies. The PLI scheme has a budgetary allocation of ₹17,000 crores over a six-year period.
The Central government reported an increase in investments in the telecom sector, with ₹1600 crore invested when the target was only ₹900 crores. This information was shared by the government last month.
