According to reports, the government has asked Chinese phone manufacturers to include Indian equity partners in their local operations. According to The Economic Times, which cited three executives who attended meetings at which the matter was conveyed, the businesses have also been requested to appoint Indian executives to key roles such as chief executive officer (CEO), chief operating officer (COO), chief financial officer (CFO), and chief technical officer (CTO).
These executives claim that these businesses have also been requested to employ Indian contract manufacturers, expand exports from India, establish local distributors, and increase local manufacturing right down to the component level through joint ventures with Indian businesses. They have also been told by the government not to evade taxes in India and to follow the law.
At recent meetings organized by the ministry of electronics and information technology (MeitY), these issues were made known to Chinese companies like Xiaomi, Oppo, Realme, and Vivo as well as the India Cellular and Electronics Association (ICEA). The Commerce Ministry reports that China’s share of India’s merchandise imports has decreased from 15.43 percent in 2021-22 to 13.79 percent in 2022-23. In comparison to the same time last year, China’s imports of electronic goods decreased by approximately $2 billion in 2022-23 (April-February).
In addition, the percentage of electronic goods imported from China has decreased, from 48.1% in 2021-22 (April-Feb) to 41.9% in 2022-23 (April-Feb). A huge fall in share from China was found in imports of composts – – from 21.9 percent in 2021-22 (Apr-Feb) to 13.9 percent in 2022-23 (Apr-Feb) and this records for around a portion of a billion fall in imports from China.
