Tech & Society

Indian Protectionism Drives Xiaomi Supplier to Plan for Manufacturing in India

While US policy on H1B visas is giving Indian companies sleepless nights, Indian protectionism is making Chinese companies take some important decisions. Prime Minister Narendra Modi’s ‘Make in India’ policy focuses on encouraging local production. As part of this strategy, New Delhi has hiked tariffs for imported smartphones from 10% to 15% in December. The hike is likely to go upto 15% in April. This explains Chinese electronics company, Xiaomi’s decision last year to build its third phone factory and first power bank facility in India.

As a result, Chinese company Q Technology, which supplies mobile phone components to Xiaomi, is planning to move a unit of its camera module manufacturing to India. The company is a growing entity in camera and fingerprint modules and caters to several Chinese smartphone makers and is planning a visit to India in the coming month.

While releasing financial results, Q Technology chairman He Ningning told the Nikkei Asian Review that the Indian government may be hiking prices for imported mobile phone components. Ningning said that in contrast, US, in spite of the Trump administration’s protectionism might be a better option, because apart from ZTE, Chinese smartphone makers don’t own a big stake in the US market.

The Nikkei Asian Review reported Ningning as saying that “some economic powers may enter into an interest rate hike cycle.” This protectionism “may pose new barriers for entry [by Chinese smartphone makers] into overseas markets, and affect their overseas expansion.”

According to the market research firm IDC, in 2017, Chinese manufacturers owned the majority of the $124 million Indian smartphone market

Xiaomi, which is called the Apple of China, took only three years to make it big in India. It is known to have used online marketing as its prime strategy, and is the first brand to reach where it is now, that is, Samsung’s competitor. Products like Redmi Note 4, Redmi 4 and Redmi 4A are its best-selling phones.

Navanwita Bora Sachdev

Navanwita is the editor of The Tech Panda who also frequently publishes stories in news outlets such as The Indian Express, Entrepreneur India, and The Business Standard

Recent Posts

Disrupting Fintech: How product studios are transforming financial services

In the rapidly evolving financial technology landscape, innovative product studios are emerging as powerful catalysts…

1 day ago

Harnessing the power of AI: Preparing today’s workforce for tomorrow’s challenges

In an era defined by rapid technological advancement, Artificial Intelligence (AI) stands as a transformative…

1 day ago

Indian esports makes history at BRICS Esports Championship in Moscow

In a historic moment for Indian esports, Wasfi “YoshiKiller” Bilal secured a silver medal at…

2 days ago

Geek Appeal: New gadgets & apps on the block

The Tech Panda takes a look at recently launched gadgets & apps in the market.…

2 days ago

Ecosystem harkat: India’s Biotech & space tech, early stage tech startups & women entrepreneurs in blockchain

The Tech Panda takes a look at what’s buzzing in the startup ecosystem. The startup…

2 days ago

Harris vs. Trump: Forecasting Bitcoin’s Future in a Post-Election Economy

With just days until the outcome of the U.S. presidential race, Bitcoin enthusiasts across the…

3 days ago