India already has policies in place to discourage the import of products from China, but a new law could directly affect what those interested in budget smartphones will find on the shelf. Indian authorities are considering a ban on the sale of budget smartphones of Chinese origin – the biggest sellers in the market. This appears to be an attempt to encourage local production, leaving the premium phone market still free for Chinese devices.
Indian authorities try to encourage local production
According to Bloomberg, India is working on a bill under which all phones cheaper than 12,000 rupees (about $150) would be banned for sale in local stores if they are made in China. As a result, these low-value devices could be produced in Indian factories, with several smartphone brands already having a local presence in the manufacturing area. Even Apple is developing smartphones in India.
With this move, brands that dominate the Indian smartphone market, such as Realme and Xiaomi, could have their business severely affected in the region. Samsung and Apple, however, would remain unaffected.
This is just another “episode” in the conflict between India and China. The two Asian countries have even had direct clashes, with soldiers from both sides fighting on the border, but most clashes in recent years have been over economics. For example, Chinese goods are taxed more than imports from other countries, which has even affected local production of iPhones, which use Chinese-made components and materials.
With this move, the authorities want to encourage more companies, perhaps even some of Chinese origin, to move some production from China to India.