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Xiaomi flags suppliers' concerns in India
Mint Mumbai
|February 12, 2024
China's Xiaomi has told New Delhi that smartphone component suppliers are wary about setting up operations in India amid heavy scrutiny of Chinese companies by the government, according to a letter and a person with direct knowledge of the matter.
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Xiaomi, which has the biggest share in India's smartphone market at 18%, also asks in the letter dated 6 February that India consider offering manufacturing incentives and lowering import tariffs for certain smartphone components.
The Chinese company assembles smartphones in India with mostly local components and the rest imported from China and elsewhere. The letter is Xiaomi's response to a query from the information technology ministry asking how New Delhi can further develop the country's component manufacturing sector.
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