India is planning to ban Chinese phones that cost less than $150

The Indian flag in front of a blue sky

Today, India has put forward a move to restrict any smartphone manufacturer from China from selling phones in the budget market of less than ₹12,000 (equivalent to $150). It's doing it in a bid to give the domestic industry a boost, but could be damaging to companies such as Xiaomi and Realme.

This move coincides with a key concern from Indian manufacturers, who are worried that these manufacturers are undercutting them on price and performance. Xiaomi and other similar brands have significantly benefitted from the Indian market in recent years, with a third of India's sales volume for the quarter through June 2022 being under $150, and Chinese manufacturers taking up 80% of those shipments according to Counterpoint.

At present, there isn't any official timeline for when this move will be implemented. The Indian government continues to privately ask Chinese executives to help support local businesses. This suggests that they do not want China to completely pull out of the Indian market altogether, but is trying to appease the businesses closer to home.

In the past, the Indian government has already banned Huawei and ZTE equipment from the country. Even though there is no official policy on this, wireless carriers in India are already advised to consider alternatives to these suppliers, as well as banning other Chinese apps in moves to further remove Chinese providers from their markets.

Source: Bloomberg

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