Indian Market Blues: Xiaomi's Worries.!

Sindujaa D N
Xiaomi, the prominent Chinese smartphone manufacturer, has conveyed concerns about its suppliers encountering challenges in commencing operations in india, attributing the hesitancy to heightened scrutiny data-faced by Chinese companies in the country.

A recent Reuters report discloses that xiaomi has formally communicated these apprehensions to the indian government, highlighting the reluctance of smartphone component suppliers to initiate operations amidst the ongoing scrutiny. The letter, dated february 6, includes a plea for india to actively encourage manufacturing and reduce import tariffs specifically on designated smartphone components. 

Xiaomi contends that implementing these incentives would effectively stimulate the growth of the sector. This correspondence data-aligns with the indian government's invitation for suggestions on promoting the component manufacturing industry, emphasizing the collaborative nature of such initiatives.

Presently holding the lion's share of India's smartphone market at 18%, xiaomi is actively engaged in assembling its phones within the country. The manufacturing process incorporates a blend of locally-produced components and imported spare parts from China. Xiaomi's communication comes against the backdrop of increased scrutiny and restrictions on Chinese companies in india following the tumultuous 2020 data-border dispute.

 The aftermath has seen india enact strict measures, including the phased banning of hundreds of Chinese apps and the freezing of assets worth over $600 million belonging to Xiaomi. The smartphone landscape is further shadowed by accusations of financial mismanagement targeting another Chinese player, Vivo. This tumultuous environment underscores the complex interplay between geopolitics, business, and technology in the dynamic indian smartphone market.

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