New Delhi, Despite dominating the Indian mobile phone market, Chinese firms like Xiaomi, Oppo, Vivo, and Realme face government concern over their minimal contribution to exports. These companies collectively hold a 74% share in the domestic market but only a 4% share in exports, raising eyebrows amid India’s push for an export-driven growth strategy in the electronics sector.
While the Indian government emphasizes an export-oriented approach for electronics manufacturing, especially in mobile phones, Chinese brands are lagging in contributing to India’s export goals. Market trackers reveal that, by volume, Chinese firms command a substantial 74% share in the Indian mobile phone market, but their export share is disproportionately low at 4%.
Tarun Pathak, research director at Counterpoint Research, pointed out, “For Chinese players, their strong regions are China, India, and Southeast Asia, and in all three, they have local manufacturing capabilities. So, there is less incentive to export from India.”
Contrasting this trend, Apple, a Cupertino-based smartphone maker, which also manufactures the majority of its iPhones in China, is gradually increasing its exports from India. In the fiscal year 2022-23, India exported over ₹90,000 crore ($11.12 billion) worth of mobile phones, with Apple accounting for around $5 billion.
The Indian government is keen on shifting the focus of electronics manufacturing, particularly mobile phones, toward exports, considering the saturation in the domestic market. Telecom and IT minister Ashwini Vaishnaw highlighted the potential for export-led growth in the electronics sector.
Despite government efforts to encourage Chinese brands to increase exports and focus on high-end devices, there has been limited progress. The government aims to ensure that Chinese brands use local supply chains, export devices manufactured in India, and contribute to the Indian exchequer.
While Chinese companies argue that they face a ‘disability’ in terms of not receiving benefits under the Indian government’s production linked incentive (PLI) scheme, officials challenge this claim. The government points out that Indian contract manufacturers can produce devices for Chinese brands and claim benefits under PLI.
The government has also urged Chinese mobile phone makers to include Indian equity partners in their local operations and appoint more Indian executives in key roles. However, progress in these aspects remains slow, and concerns linger about the low uptake in exports from Chinese firms.
