In a major blow to Chinese smartphone makers including the likes of Xiaomi Corp., India is looking to restrict them from selling devices cheaper than Rs 12,000 or USD 150, in a bid to push its domestic industry.

According to reports, the move aims to push Chinese companies out of the lower segment of the world’s second-largest mobile market. It also comes amid reports of concern regarding high-volume brands like Realme and Transsion undercutting local manufacturers.

This will come as a serious blow to companies like Xiaomi and the likes who have increasingly relied on the Indian market to drive growth in the recent years. Smartphones under the USD 150 mark make up a third of India’s sales volume for the June 2022 quarter. According to Counterpoint, 80 per cent of those shipments came from Chinese companies.

Meanwhile, shares of Xiaomi slid during trade in Hong Kong on Monday by 3.6 per cent extending its decline to over 35 per cent this year.

It may be noted that the Centre has already closely scrutinized the finances of Chinese firms like Xiaomi, Oppo and Vivo, which are operating in the country.

Furthermore, the move will not be affecting either of Apple Inc. or Samsung Electronics Co., which generally price their phones in the higher ranges.

Earlier, in the summer of 2020, India mounted pressure on Chinese firms after over a dozen Indian soldiers were killed in a clash along the borders. Since then, India has banned more than 300 apps including the likes of WeChat and TikTok.