Xiaomi, Oppo, Vivo May Start Exporting Smartphones From India Soon

Chinese handset brands, Xiaomi, Oppo, and Vivo will soon be exporting their smartphones from India, after reaching an agreement with the government in a move that could see a further dip in China's manufacturing prowess after Apple has been actively shifting some of its manufacturing out of China amidst protests and disruptions.

According to a report by Times of India, the three Chinese brands have chalked out plans to start exporting the smartphones they make in India, bolstering the country's Make in India initiative. All the three brands have been under intense scrutiny and investigation by government agencies into their operations.

Big Boost to Make in India Programme

The move, if it works out, will see the Chinese brands exporting made in India smartphones to the MIddle East, Latin America, Africa, and some parts of Europe, in addition to neighboring countries like Pakistan and Bangladesh.

Samsung and Apple already export a large part of their production in India to other countries. With the Chinese manufacturers pitching in, India's dreams of becoming an electronics manufacturing hub could bear fruit. This is reportedly the first time Chinese smartphone companies have agreed to share their global production volumes with India.

FDI Restrictions Paving Way for Electronics Manufacturing

The report states that the agreement could be an outcome of the FDI restrictions India put on China and other neighboring countries after the pandemic and the Galwan Valley clash. As a result, it became difficult for Chinese smartphone companies to continue investing in India. However, the government's production-linked incentive scheme for smartphones sweetens the deal for Chinese manufacturers to tie up with local players to boost production. Apple and Samsung already make good use of the PLI scheme to boost their production to serve both the local demand as well as export to other countries. Apple started manufacturing the latest iPhone 14 just days after the device was launched globally.

The report also said the three Chinese smartphone makers are under "increased pressure" from the government to start exporting devices. Local manufacturers like Optiemus Infracomm and Dixon Technologies could be in the running to snag the deals. That said, the government had recently stopped a large shipment of Vivo smartphones meant for exports, which may be seen as a dampener to the efforts.