Govt tells Chinese smartphone makers to get Indian equity partners, appoint Indian execs in key roles: Report

Chinese mobile phone manufacturers have reportedly been asked by the government to induct Indian equity partners in their local operations. Moreover, the companies have also been asked to appoint Indian executives in key roles such as chief executive officer (CEO), chief operating officer (COO), chief financial officer (CFO) and chief technical officer (CTO), The Economic Times reported citing three executives who attended meetings at which the matter was conveyed.

According to these executives, these companies have also been asked to appoint Indian contract manufacturers, increase local manufacturing down to the component level through joint ventures with Indian businesses, expand exports from the country and have local distributors.

The government has also directed them to ensure legal compliance and not to evade taxes in India.

These issues were communicated to Chinese firms including Xiaomi, Oppo, Realme and Vivo as well as the India Cellular and Electronics Association (ICEA) at recent meetings held by the ministry of electronics and information technology (MeitY). 

Separately, China's share in India's merchandise imports have declined to 13.79 per cent in 2022-23 from 15.43 per cent in 2021-22, as per the Commerce Ministry. The imports of electronic goods from China have seen a decline of around $2 billion in 2022-23 (Apr-Feb) compared to same period last year.

The import share from China in electronic goods has also declined from 48.1 per cent in 2021-22 (Apr-Feb) to 41.9 per cent in 2022-23 (Apr-Feb). A significant fall in share from China was seen in imports of fertilizers -- from 21.9 per cent in 2021-22 (Apr-Feb) to 13.9 per cent in 2022-23 (Apr-Feb) and this accounts for around half a billion fall in imports from China.

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