Govt charts new rules for Oppo, Realme, and other Chinese mobile companies: Report
1 min read 13 Jun 2023, 07:44 AM ISTIndian govt asked Chinese mobile companies Xiaomi, Oppo, Realme and Vivo to include Indian equity partners, appoint Indian executives in top roles, and follow legal compliance to do business in India. The move comes amid scrutiny for tax evasion and alleged illegal remittances.
PremiumThe Central government has charted a plan for Chinese mobile companies in order to do business in India. The Centre has asked Xiaomi, Oppo, Realme, and Vivo to induct Indian equity partners in their local operations, according to a report by the Economic Times.
Besides, the government has asked Chinese mobile handset companies to appoint Indian executives in top roles such as chief executive officers (CEO), chief financial officers (CFO), chief technical officers (CTO), etc. The English daily said that government has also directed the Chinese mobile firms to appoint Indian contract manufacturers, escalate local manufacturing down to the component level through joint ventures with Indian businesses, expand exports from India, and hire local distributors only. They have also been warned against tax evasion and instructed to follow legal compliance.
The new rules for Chinese firms were directed by the Ministry of Electronics and Information Technology (MeitY) in which the government communicated with Chinese mobile firms and India Cellular and Electronics Association (ICEA).
The meeting happened as several Chinese smartphone manufacturers are under scrutiny for tax evasion and alleged illegal remittances worth rupees thousands of crores.
The Centre wants these companies to take advantage of local talents and make India their export and production base.
Last month the Centre approved the Production Linked Incentive (PLI) Scheme for IT Hardware with the aim to attract investments and promote the capacity and capability of Indian companies.
The budgetary outlay of the PLI scheme is ₹17,000 crores for a period of six years.
According to the Centre, investments attracted in the telecom sector have increased. " ₹1600 crore of investment took place in the field when the target was only ₹900 crores," the Central government said last month.