Union Budget 2021: shock to Chinese smartphone companies, these phones including Xiaomi, Vivo will become expensive.
Tech786: Finance Minister Nirmala Sitharaman has presented the General Budget 2021-22 in Parliament. In this budget, the Finance Minister has given a big blow to Chinese smartphone maker companies. Along with this, he has given the edge to PM Modi’s “Make in India Campaign”. In fact, in the General Budget 2021-22 presented on Monday, Finance Minister Nirmala Sitharaman has raised the import duty on smartphones and smartphone chargers to 2.5 percent.
This move of the government will make China-made smartphones expensive in India. On the other hand, domestic smartphone maker companies will benefit. Increasing the import duty of smartphones will stabilize the prices of phones of domestic smartphone companies. While the price of Chinese smartphone will increase. In this case, the price of smartphones manufactured in India will be lower than that of smartphones imported from Chinese.
Local manufacturing of smartphones will increase
However, if Chinese smartphone companies do not want to let their smartphone prices rise in India, then they will not have to manufacture their phones in India. The increase in import duty of smartphones will force foreign smartphone companies to manufacture smartphones in India.
This will strengthen PM Modi’s Make in India campaign. Let us know that at present, companies like Xiaomi, vivo, Realme, Samsung import smartphones in India on a large scale. Companies like Xiaomi, Vivo, realme, Samsung and OPPO are India’s top-5 smartphone companies. Shilpi Jain, research analyst at Counterpoint Research, said that the share of Chinese smartphone brands declined to 72 percent in April-June 2020, compared to 81 percent in January-March 2020.
Which company has how much market share in India?
As of the first quarter of the year 2020, Xiaomi has around 30 per cent market share in India. Vivo was second with 17 percent. While South Korea stood third with 16 per cent of the company. After this comes the number of Oppo and Realme.