India considers restricting sale of sub-$150 phones by Chinese firms

India is searching for to limit Chinese firms from its sub-$150 cellphone market in a bid to revive the prospects of home gamers, Bloomberg News reported on Monday, citing unidentified sources.

The transfer could be a blow to Chinese firms comparable to Xiaomi, in keeping with the report https://bloom.bg/3QbVvAu. The plans coincide with rising issues in India about Chinese manufacturers undercutting native smartphone makers, it added.

It is unclear if the Centre will announce insurance policies or use casual channels to execute the block on Chinese smartphone makers, Bloomberg mentioned, citing folks accustomed to the matter.

Chinese firms account for a serious chunk of entry-level smartphones which can be widespread amongst customers shifting away from conventional units in India, which is the second-largest cellular market on the planet.

Indian firms comparable to Lava and MicroMax quickly gained reputation after their launch over a decade in the past, however have since misplaced market share to stiff competitors from Chinese gamers.

Many Chinese firms have struggled to do enterprise in India resulting from political tensions following a border conflict in 2020. India cited safety issues in banning over 300 Chinese apps, and has additionally tightened guidelines for Chinese firms investing in India.

Xiaomi and rival Vivo are being investigated by India’s monetary crime preventing company for alleged unlawful remittances and cash laundering. Both deny any wrongdoing.

The firms and the Indian authorities didn’t instantly reply to requests for touch upon the report.