What are three things that Centre wants Chinese smartphone manufacturers to make 'right'?

New Delhi: In recent years, leading Chinese smartphone companies have encountered significant scrutiny in India, facing allegations ranging from customs duty and income tax evasion to money laundering. In response to these challenges, Vivo and Oppo, among others, are taking proactive steps to address concerns raised by the Indian government.

Appointment of Indian distributors

Vivo and Oppo are now in the process of appointing Indian distributors in each state, marking a significant shift in their distribution strategy. This move aims to establish a local distribution structure and alleviate longstanding conflicts with Indian authorities.

Government expectations: Three key requirements

The Indian government has outlined three key expectations for Chinese smartphone brands operating in the country:

1. Indianisation of Senior Management

A primary requirement is the Indianisation of senior management within these companies. The government insists that key executives overseeing operations should be of Indian origin, aligning with the ethos of localization and integration.

2. Adoption of Indian Distributors

Another crucial aspect is the adoption of Indian distributors to manage product supply across states. This initiative aims to decentralize distribution channels and promote indigenous business partnerships.

3. Utilization of Local Contract Manufacturers

Chinese smartphone companies are urged to engage local contract manufacturers for production. Entities like Oppo, Vivo, and Realme are already in the process of collaborating with Indian manufacturers such as Dixon Technologies and the Karbonn Group to meet this requirement.

Implementation and impact

The transition towards Indian distributors and local manufacturing partnerships signifies a significant shift in the operational dynamics of Chinese smartphone companies in India. By adhering to these government expectations, these companies aim to foster stronger ties with local communities and demonstrate commitment to India's economic landscape.

As Chinese smartphone brands navigate regulatory challenges in India, their ability to adapt to local requirements will play a pivotal role in shaping their long-term presence and reputation in the country's burgeoning smartphone market.