The first wave of the covid-19 pandemic in India led to the banning of Chinese apps and FDI (Foreign Direct Investment) by the Indian government. And now the second wave of the globally covered covid-19 crisis in India is once again brewing trouble for Chinese businesses, this time consumer tech companies and smartphones.
Which companies are most affected?
The hostility against China has led to the Wireless Planning & Co-ordination (WPC) wing of the Department of Telecommunications, Ministry of Communications withholding the approval of Wi-Fi modules imported from China. In a bid to block electronics like smartphones, smartwatches, and laptops from being imported from China, Wi-Fi modules are stuck at Indian ministries for quite some time now.
This has now impacted the timely launch of consumer products and electronic devices like Bluetooth speakers, wireless earphones, and smartphones. The most affected Chinese companies are some of the biggest in India:
- Xiaomi
- Oppo
- Vivo
- Lenovo
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The Indian consumer tech industry is a key growth market and will open up avenues for domestic players now that big Chinese players have been kept out.
How will Consumer tech in India benefit?
The consumer technology sector in India is getting affected due to the geopolitical differences between India and China. The campaign against Chinese vendors and the push by the Indian government towards manufacturing of smartphones in India will create new opportunities in the domestic market.
The Indian consumer tech industry is a key growth market and will open up avenues for domestic players now that big Chinese players have been kept out.
Smartphone assembly has increased within the country and ‘Make in India’ smartphone manufacturers are being persuaded to produce electronic devices within India.
If the consumer tech market can pull off economic self-reliance, then domestic manufacturers of electronics will benefit immensely.
What should smartphone start-ups do?
The Indian government is cracking the whip on imports of Chinese made technology. Consumer tech start-ups in India who are planning to import Chinese devices need to anticipate this. This is mainly for devices that contain a Wi-Fi module.
As an Indian start-up, if you are trying to bring in products from China, then you can expect a delay from the WPC (Wireless Planning & Co-ordination commission). Sales of smartphones within India also require approvals from both BIS (Bureau of Indian Standards) and WPC. BIS comes under the Ministry of Consumer Affairs whereas WPC comes under the Ministry of Communications.
India is the key consumer tech market and with Chinese giants like Xiaomi, Oppo, Vivo, and Lenovo being side-lined, the market opportunity for smartphone and electronic device start-ups will be tremendous.
India is currently the world’s biggest mobile maker and consumer tech start-ups thinking about making an entry to the scene will see ample support for domestic manufacturing.
