Oppo, Vivo, Xiaomi Agree To Shift Some Export Production From China To India
NEW DELHI: A major win for the government's efforts to make India a global electronics and smartphone manufacturing hub is that major Chinese companies like Vivo, Oppo and Xiaomi have agreed to export Indian-made devices to countries all over the world. world and give away one of their own. . A key part of Chinese industrial production.
Exports of Indian-made smartphones by Chinese firms will mark a shift in manufacturing strategy as they may share manufacturing volumes with India for the first time and open up global markets, which they vehemently deny. do so far.
Sources say China's top three producers have completed massive export plans from India, following in the footsteps of US giant Apple and Korea's Samsung, while potential overseas markets could include Africa, the Middle East, Latin America and even Europe. from neighboring countries.
The policy change comes amid a government strategy to discourage or slow down Chinese investment in the wake of the Covid-19 pandemic and tensions in Ladakh. Not only have Chinese investments been excluded from the automatic FDI approval process, but several companies have seen their approval blocked. In addition, Chinese telecom companies are not on the list of preferred suppliers and tax investigations are underway for some of them.
"Government schemes such as the Production Related Incentive Scheme (PLI), which provide benefits to local suppliers in India, are seen as a key reason for companies to change their strategy as the government increases pressure on equipment exports," they said. several sources told TOI. adding that Optiemus Infracom and local producers like Dixon were looking for "business and deals". The government has also clarified that all Chinese investments, including through the PLI, require its approval.
But Vivo has already started testing the waters when it comes to Indian exports, though the company recently sold $15 million worth of export-worthy products to DRI Blocked for misrepresenting the value and branding of the devices. . The company considers the regulators' actions an "anomaly" but believes they will not interfere with its broader plans to start exporting from India. Sources said Oppo is pushing an export strategy from India "on the offensive" while Xiaomi, the largest Chinese smartphone company in India, is also working on the plans. When questioned, Oppo and Vivo did not comment on a specific questionnaire in this regard.
Xiaomi India boss Muralikrishnan B. said export plans will be expanded. "We agree with the Government of India's vision to transform India into a $5 trillion economy by 2025-2026 and ensure that India becomes a major base for electronics manufacturing (including exports of smartphone)," said Muralikrishnan, president of Xiaomi India. that so far the company has had limited exports to neighboring countries such as Nepal and Bangladesh. “For further expansion, cost issues and global macroeconomic factors need to be overcome. We will try to overcome these problems in time," he said.
Sources say the government has "almost made a condition" for companies to start exporting smartphones from India, something Samsung and Apple are pushing for. Samsung exported $2.8 billion worth of phones between April and October this year, while Apple, which makes iPhones at Foxconn, Wistron and Pegatron factories in India, reported it shipped $2 billion worth of devices. .2 billion dollars.
In comparison, there are few Chinese producers, despite occupying the lion's share of the Indian domestic market.
Information and Electronics Minister of State Rajiv Chandrasekhar and senior cabinet colleague Ashwini Vaishnav have repeatedly stressed the need to ramp up India's electronics manufacturing, which should also be geared towards export markets.
Chinese firms are keen to start exporting as they want to prove they are serious with Indian manufacturing as they face a range of regulatory challenges in India, including requests from the Income Tax Administration and Regulatory Authority, the sources said .