Chinese companies threatened to stop manufacturing smartphones in India

- Escape tactics of Vivo, Xiaomi, Oppo after ED-IT raid

- Companies considering setting up plants in Bangladesh, Indonesia and Nigeria instead of India: Chinese state newspaper report

New Delhi: There have been serious allegations of tax evasion against Chinese mobile manufacturing companies in India. ED and Income Tax officials raided Chinese mobile manufacturing companies. Especially in the raid conducted by Xiaomi, Oppo and Vivo, many problems of tax evasion were exposed. After that, these troubled Chinese companies have threatened to stop production in India. A report published in China's state-run newspaper Global Times said that there are plans to start production units in other countries instead of India.

Chinese mobile manufacturers - Xiaomi, Oppo and Vivo are likely to close down their manufacturing units in India. A report published in the Chinese government newspaper Global Times said that due to raids on these mobile manufacturing companies in India one after another, the companies are now thinking of stopping the production of smartphones in India. It is planned to start production in countries like Bangladesh, Indonesia and Nigeria instead of India. The report also said that the Indian government was responsible for stopping the production in India by coming down hard on the Chinese companies.

Investigation agencies have made serious allegations against these three Chinese companies. ED seized Rs 5551 crore from Xiaomi in April. This company was illegally sending this amount abroad in the name of royalty. This company is a subsidiary of MI. The company also sells mobiles from other brands including Redmi, Poco. In July, an investigation by the Director of Revenue Intelligence (DRI) revealed that Oppo India had evaded taxes worth Rs 4,389 crore. The government sent a notice to the company. Similarly, ED raids took place at 44 places of Vivo company in the month of July itself and the officials said that the financial crisis of the company was caught.

Amid strained diplomatic relations between India and China, there were reports that foreign companies would not be able to manufacture smartphones priced below Rs 12,000 in India. Only domestic companies can make such phones. Although these reports were refuted by the central government officials, Chinese companies are worried about it. In the future, if the government makes such a rule, Chinese companies will have to look for markets in other countries, which may prove difficult for them.

It will not be easy for Chinese companies to stop production in India. With the stoppage of production in India, the huge market of India will also be lost. In such a situation, Chinese companies have to bear many times more losses than the Indian consumers or the government. By setting up a production unit in another country, these companies will not get the market there. India is the best market wise. The purchasing power of India's young generation is the highest in the world. India is the world's fourth largest economy by market. In such a situation, if Chinese companies close their production units in India, many other domestic and foreign companies are able to take the place.

Four out of five phones sold in India are Chinese

Chinese companies have a 79 percent share of India's smartphone market. The facility which foreign smartphone manufacturing companies other than China provide for 30 to 50 thousand or lakh rupees, Chinese companies provide such facilities at 30-40 percent or sometimes even 50 percent less than that. Samsung is the only non-Chinese company in India, which has a good market share. Apart from this, the market of Sony, Nokia has started to be limited. iPhone is very popular in the limited segment, but its configuration is expensive compared to Chinese mobiles. As a result, Chinese companies sell millions of units of mobiles in the Indian market every year.