Chinese mobile companies have been directed to follow strict rules by the Indian government if they want to continue doing business in the country. Here are the key highlights of the new plan:
• Chinese companies like Oppo, Realme, and Vivo have been asked to include Indian equity partners in their local operations.
• The government has directed companies to keep Indian people in high positions like their CEO, CFO, and CTO.
• Companies have been asked to appoint Indian contract manufacturers, increase manufacturing to the local level through joint ventures, expand exports from the country and employ only local manufacturers.
• The new rules have been framed by the Ministry of Electronics and Information Technology after many Chinese smartphone companies were found to be under investigation for tax evasion and illegal transactions allegedly worth thousands of crores.
The government hopes that the new rules will encourage Chinese companies to take advantage of the local talent present in India and manufacture products in India that can be exported to foreign countries. This will provide employment to the common people, and also help Chinese companies continue to do business in India.
Xiaomi is currently the most popular Chinese mobile company in India, followed by other budget smartphone brands. Chinese companies have increased their business to crores of rupees in India by taking advantage of the budget smartphone demand.
The Indian government hopes that the new rules will help Chinese companies to work more closely with Indian partners and benefit from India’s vast pool of talent and resources. It remains to be seen how Chinese companies will respond to the new rules and whether they will continue to do business in India.
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