The central government has prepared some rules for Chinese mobile companies to do business in India. In this, while issuing guidelines to companies, Xiaomi, Oppo, Realme and Vivo have been asked to include Indian equity partners in their local operations.
According to government has asked Chinese mobile handset companies to appoint Indian executives in top roles such as Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Technical Officer (CTO).
Apart from this, the government has directed Chinese mobile firms to hire Indian contract manufacturers, expand exports from India and appoint only local distributors.
Along with this, he has also been warned by the government against tax evasion and has been instructed to comply with the law.
What is the matter?
The new rules for Chinese firms were directed by the Ministry of Electronics and Information Technology (MeitY) in which the government interacted with Chinese mobile firms and the India Cellular and Electronics Association (ICEA).
The meeting took place as several Chinese smartphone makers are under the scanner for tax evasion and illegal remittance of thousands of crores of rupees. The Center wants these companies to take advantage of local talent and make India their export and production base.
Last month, the Center approved the Production Linked Incentive (PLI) scheme for IT hardware with an aim to attract investment and boost the capacity of Indian companies. The budget outlay of the PLI scheme is Rs 17,000 crore for a period of six years.
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