New Delhi: Oppo, Vivo and Xiaomi have reportedly agreed to shift some of their production from China to India. This is seen as a big win for the government’s efforts to encourage production and export from India. It is being speculated that the companies’ move to export devices made in India will cut a major chunk of output for manufacturing from their facilities in China.
Notably, all three companies were continuously in pressure from the Government of India to start exporting from India. It is seen as a move by these companies to get a relief from strict restrictions the Indian government had put in place to discourage investments from China in India. This was done after the pandemic and the Galwan Valley clash between India and China.
The government also provides production-linked incentives (PLI) to companies that manufacture locally. This is a scheme that is extensively enjoyed by both Samsung and Apple.
Both companies not only manufacture in India but also export Indian-manufactured products to the international market. In a similar way, the three Chinese companies taking all these factors into consideration have now decided to shift some of their manufacturing units to India.
Reportedly the Indian-manufactured products will be exported to Africa, the Middle East, Some parts of Europe and also India’s neighbouring countries such as Pakistan.
This will be a big boost to India’s Make in India program which has also attracted leading manufacturers from around the world. The three companies might also expect some relief from the Government’s continuous strict scrutiny of finances and business in India.
