Xiaomi urges India for support amid component supplier hesitancy

  • Industry News
  • Feb 12,24
In a letter dated February 6, the company also urges India to consider providing manufacturing incentives and reducing import tariffs for specific smartphone components.
Xiaomi urges India for support amid component supplier hesitancy

Xiaomi, the leading player in India's smartphone market with an 18% share, has conveyed to New Delhi that suppliers of smartphone components are hesitant to establish operations in India due to increased scrutiny of Chinese companies by the government. In a letter dated February 6, the company also urges India to consider providing manufacturing incentives and reducing import tariffs for specific smartphone components.

Xiaomi, which assembles smartphones in India using mostly local components and some imported from China and elsewhere, responded to a query from India's information technology ministry about developing the country's component manufacturing sector. The heightened scrutiny of Chinese businesses in India, prompted by a 2020 border clash, has disrupted investment plans and drawn protests from Beijing.

While many Chinese companies in India avoid public statements on the scrutiny, Xiaomi's letter reveals ongoing challenges, particularly in the smartphone sector where critical components are often sourced from Chinese suppliers. Xiaomi India President Muralikrishnan B. emphasised the need for "confidence-building" measures to encourage local operations by component suppliers.

The letter outlines concerns among suppliers related to compliance, visa issues, and unspecified challenges faced by companies in India, particularly those of Chinese origin. Xiaomi calls on the government to address these concerns and boost confidence among foreign component suppliers, urging them to establish manufacturing facilities in India.

The letter also advocates for a reduction in import tariffs on certain sub-components used in batteries, USB cables, and phone covers. Xiaomi contends that lower import tariffs could enhance India's manufacturing competitiveness by reducing costs. However, the company highlights the necessity for significant incentives to attract component manufacturers to set up operations in India.

Xiaomi's plea for a conducive business environment comes amid regulatory actions against Chinese companies in India, including allegations against Vivo Communication Technology and the freezing of over $600 million in Xiaomi assets for alleged illegal remittances. The letter emphasises the importance of addressing these issues to foster a more favourable environment for Chinese businesses in India.

The source also reveals that executives from Chinese electronics companies encounter difficulties obtaining visas to enter India, and their companies face delays in investment clearances due to intense scrutiny by New Delhi. Xiaomi's letter concludes by aligning with the statement made by India's top industrial policy bureaucrat in January, suggesting a potential easing of scrutiny on Chinese investments if the border situation remains peaceful.

Source: Moneycontrol.com

Related Stories

Automation & Robotics
IIIT Hyderabad, Hexagon Set Up Digital Twin Centre of Excellence

IIIT Hyderabad, Hexagon Set Up Digital Twin Centre of Excellence

IIIT Hyderabad and Hexagon R&D India are establishing a Digital Twin CoE to advance AI-led research, education and industry applications in computer vision and spatial computing.

Read more
Construction Equipment
SDLG India Plans Rs 15 bn Investment, Adds 3,000-Unit Capacity

SDLG India Plans Rs 15 bn Investment, Adds 3,000-Unit Capacity

SDLG India plans to invest Rs 15 billion in India, starting with a Rs 3 billion Gujarat plant with phased capacity of 3,000 units annually.

Read more
Electrical & Electronics
IESA Launches BESS Initiative to Accelerate C&I Energy Storage Adoption

IESA Launches BESS Initiative to Accelerate C&I Energy Storage Adoption

IESA’s new “BESS for C&I” initiative aims to accelerate commercial and industrial battery storage adoption by addressing cost, policy and awareness challenges.

Read more

Related Products

Computer And Laptop

ELECTRICAL & ELECTRONIC EQUIPMENT

SICCO Engineering Works offers a wide range of computer and laptop.

Read more

Request a Quote

Test Terminal Block Utility Plus - Jttbu Plus

ELECTRICAL & ELECTRONIC EQUIPMENT

JVS Electronics Pvt Ltd offers a wide range of test terminal block utility plus - JTTBU plus.

Read more

Request a Quote

Kusam-meco Handheld Thermal Camera Model- Km 300

ELECTRICAL & ELECTRONIC EQUIPMENT

KUSAM-MECO, the innovators of new products in the Test and Measurement field, have added a new Thermal Imager with Camera.

Read more

Request a Quote
SPECIAL OFFER
QR Code

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016