Centre directs Chinese mobile phone manufacturers to get Indian equity partners

Directions were also given to appoint Indian executives in top roles such as CEO, COO etc

The Centre has directed Chinese mobile phone manufacturing companies to recruit Indian equity partners for their local operations, said three executives who attended a meeting organised by the Ministry of Electronics and Information Technology (MeitY), as per a report by The Economic Times.

According to these sources, directions were also given to appoint Indian executives in top roles such as chief executive officer, chief operating officer, chief financial officer and chief technical officer. The executives asserted that the government has sought Indian equity partners not just in manufacturing operations but also in sales and marketing units.

The discussions unfurled during the recent meetings held by the ministry that was attended by representatives of Chinese firms including Xiaomi, Oppo, Realme and Vivo as well as the India Cellular and Electronics Association (ICEA).

The Chinese companies were asked by top government officials to appoint Indian contract manufacturers, maximise local manufacturing through joint ventures with Indian businesses, increase exports from the country and expand the local distribution, the company representatives said. Besides, they were asked to ensure legal compliance and steer clear of tax evasion in India.

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Madhav Seth, Realme's president of International Business, iterated that the government wants the companies to put the local talent to good use and make India their export and production base. "Such changes will enable higher value addition in the country and make businesses self-reliant," he told the publication.

ICEA chairman Pankaj Mohindroo said that the government wants the development of Indian skills and companies at a quick pace and the integration of local companies into the big picture. "For instance, it wants Indian distribution in place of foreign distributors. The Chinese companies should start sending India-made devices so that they become net foreign exchange positive." he was quoted as saying.