Government Has No Plans to Ban Chinese Smartphones Under Rs. 12,000: Report

There are no plans by the government to ban the sale of Chinese smartphones under Rs. 12,000 in India, a new report has claimed. Citing government sources, the latest development comes a few days after a report earlier this week had claimed that the government seeks to ban smartphones from Chinese brands under the price range of Rs. 12,000. Chinese smartphones dominate the Indian market with Xiaomi leading the Indian smartphone market in Q2 2022. Meanwhile, as of early August, the government is also looking into cases of alleged tax evasion by three mobile companies from China — Oppo, Vivo, and Xiaomi.

Rebutting earlier information, a recent report by CNBC-TV18 has claimed that the government doesn't plan to ban smartphones under Rs.12,000. The report cites government sources. The report earlier this week had indicated that the government seeks to ban smartphones from Chinese brands under the price range of Rs. 12,000.

The report had added that the move was aimed at pushing Chinese giants out of the lower segment of the world's second-biggest mobile market. The decision was also said to be coinciding with mounting concerns about high-volume brands like Realme and Transsion undercutting local manufacturers.

This news come as Chinese smartphones continue to dominate the Indian market with Xiaomi leading the Indian smartphone market in Q2 2022. Realme's shipments also increased by 23.7 percent to 6.1 million units, helping it gain 17.5 percent market share while Vivo's shipments grew by 17.4 percent to 5.9 million units.

To recall, as of early August, the government is also looking into cases of alleged tax evasion by three mobile companies from China — Oppo, Vivo, and Xiaomi.

"The Department of Revenue Intelligence (DRI) has issued notice to Oppo, the mobile company, for a total customs duty of Rs. 4,389 crore, and these are on the grounds of misdeclaration of certain goods, leading to a short payment in customs duty. That duty evasion, we think, is about Rs. 2,981 crores," Union Finance Minister Nirmala Sitharaman said in Rajya Sabha earlier this month.