India may ban cheap Chinese phones

INDIA is seeking to restrict Chinese companies from its sub-$150 phone market in a bid to revive the prospects of domestic players, Bloomberg News reported, citing unidentified sources.

The move would be a blow to Chinese companies such as Xiaomi, according to the report. The plans coincide with rising concerns in India about Chinese brands undercutting local smartphone makers, it added.

It is unclear if the Indian government will announce policies or use informal channels to execute the block on Chinese smartphone makers, Bloomberg said, citing people familiar with the matter.

Chinese firms account for a major chunk of entry-level smartphones that are popular among users shifting away from traditional devices in India, which is the second largest mobile market in the world.

Indian firms such as Lava and MicroMax rapidly gained popularity after their launch over a decade ago, but have since lost market share to stiff competition from Chinese players.