China's Xiaomi has in a letter told Indian government that its scrutiny of Chinese companies is driving away suppliers.
According to Reuters, the Chinese firm, which has several assembly and manufacturing units in India, said that India's heavy vetting of Chinese companies is preventing suppliers from setting shops in the country.
Xiaomi was responsible for a large chunk of smartphone shipments from India – only behind Vivo and Samsung – in 2023. The company shipped 25.1 million phones in 2023 and had 17 per cent of the total market share.
The company expressed its concern in a letter to the Indian IT Minister who had sought its view on how to boost manufacturing sector in the country.
Xiaomi India President Muralikrishnan B in his response suggested India take some confidence building measure to woo suppliers to set shops locally.
"There are apprehensions among component suppliers regarding establishing operations in India, stemming from the challenges faced by companies in India, particularly from Chinese origin," Muralikrishnan said, as reported by Reuters.
He added, "The government should address these concerns and work to instil confidence among foreign component suppliers, encouraging them to set up manufacturing facilities in India."
In 2020, at least 20 Indian soldiers were killed in the skirmish that broke on the Line of Actual Control in Ladakh.
India in immediate retaliation proceeded to ban more than 100 Chinese owned apps, including the very popular gaming app PUBG and social media app Tik Tok, and increased scrutiny of those operating in India.
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