The Centre is actively considering minimising competition from Chinese smartphone manufacturers in the lower end or under-Rs 12,000 category in an earnest attempt to revive the domestic companies such as Lava, Intex and Micromax that have been sidelined in the last seven years.

There seems to be a growing consensus that the entry-level market should be reserved only for the local players. Further, the government is of the view that these companies should rope in Indians in the distribution supply chain business and begin exporting made-in-India smartphone devices, ET reported, citing government and industry officials.

At present, nearly 70 per cent of India’s smartphone market — and 75-80 per cent of the sub-$150 sales — is dominated by Chinese companies, compared with Indian handset manufacturers who jointly account for less than 1 per cent. From a high 35 per cent in 2015, homegrown mobile phone brands such as Micromax, Intex, Lava, and Karbonn hold less than 1 per cent of the market.

With their robust financials and healthy supply chains, Chinese companies such as Xiaomi, Vivo, Oppo, and Realme captured the bulk of the market, and the Indian players failed to resist fierce competition, with the likes of Intex and Karbonn totally exiting the smartphone market and the others almost pushed out.

The financial daily quoted a senior official as saying, “The Chinese players have used unfair means and worked as a cartel to throw the Indian firms out of competition. Moreover, Chinese nationals control the entire distribution channels, unlike other global firms like Apple or Samsung. These firms have huge money power, which allows them to offer devices at a discount”.

More importantly, whatever the Chinese firms produce in India is utilised locally. On the contrary, Apple and Samsung export a huge chunk of their devices. Indian companies such as are also exporting devices.

“We will wait and watch what happens. It sounds farfetched. If India wants to provide a level playing field, then such things are not conducive,” the publication quoted an unnamed executive at a Chinese smartphone brand.

He went on add that the government has no plans to ban any company as it will have adverse consequences at a global level.