No, Xiaomi Is Not Moving Its Operations From India To Pakistan

No, Xiaomi Is Not Moving Its Operations From India To Pakistan

A recent report from South Asia Index claimed that Xiaomi is all set to move its operations from India to Pakistan. This report comes right after the Government of India froze Xiaomi India's assets worth $676 Million. The report also claims that the company has "almost halted" its operations in India after being targeted by the Indian government.


Xiaomi India has now put out a statement stating the information mentioned in the South Asia Index's tweet is false and baseless. The company even claims that it will take all the measures to protect the brand's reputation from false and inaccurate claims. This confirms that Xiaomi has no plans to move its operations from India to Pakistan, at least not anytime soon.

Here is the official statement from Xiaomi India

"The information mentioned in the tweet is completely false and baseless. Xiaomi entered India in July 2014. In less than a year of our India operations, in January 2015, we embarked on our "Make in India" journey. Today, 99% of smartphones and 100% of smart TVs are manufactured in India. As a respected global company, we will take all advised measures to protect our reputation from false and inaccurate claims."

Why Did The Govt Of India Froze Xiaomi's Accounts?

The Government of India recently froze $676 Million from Xiaomi India's account as a part of "an investigation related to illegal remittances to foreign entities". To this, Xiaomi has replied that it has not done anything wrong, and 84 percent of the 5,551.27 crores seized amount actually constitutes a loyalty payment that Xiaomi has done to Qualcomm. The company has also issued an official statement regarding the same.


Xiaomi also claims that all the payments done by the company to Qualcomm are just related to sales done by Xiaomi India and Qualcomm has confirmed the same. The company further states that all these payments were channeled via RBI-approved and mandated banking channels.

The company further states that Xiaomi India Private Limited does not own or hold any assets outside India, and section 4 of FEMA does not even apply in this scenario. Currently, the company is working with various authorities to resolve this issue.

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