New Rules for Chinese Mobile Companies in India: Need to Know

New Rules Introduced for Chinese Mobile Companies in India: What You Need to Know

The Indian government has implemented new regulations for Chinese mobile companies operating in the country.

This decision comes as these companies face scrutiny over alleged tax evasion and illegal money transfers. According to a report in the Economic Times, Xiaomi, Oppo, Realme, and Vivo have been instructed to include Indian partners in their local operations.

Additionally, the government has mandated that these companies appoint Indian executives to key positions such as CEOs, CFOs, and CTOs. The aim is to encourage these companies to utilise the talents of local professionals and establish India as a hub for manufacturing and exporting. 

The government has also urged them to collaborate with Indian businesses for local manufacturing down to the component level.

To ensure compliance, the government has warned Chinese mobile firms against tax evasion and emphasised the need to follow all legal requirements. A meeting between the government, Chinese mobile companies, and the India Cellular and Electronics Association (ICEA) to discuss these new rules was facilitated by the Ministry of Electronics and Information Technology (MeitY).

This development comes on the heels of the government’s approval of the Production Linked Incentive (PLI) Scheme for IT Hardware, designed to attract investments and boost the capabilities of Indian companies. The scheme has been allocated a budget of ₹17,000 crores for six years.

The government had highlighted the increase in investments attracted to the telecom sector, with ₹1600 crores invested when the target was initially set at ₹900 crores. By implementing these new regulations, the government aims to foster collaboration between Chinese mobile companies and Indian stakeholders, ultimately benefiting the Indian economy.

As Xiaomi, Oppo, Realme, and Vivo navigate these changes, their ability to comply with the new guidelines and partner with Indian entities will be crucial in shaping their operations and prospects in India.

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