China’s Huawei Technologies Co. has finally got the security clearance to establish its manufacturing unit in India, thereby paving its way to become the first major Chinese brand to supply locally made products to one of the largest markets for smartphones.
India has more than close to 150 million subscribers who use Internet-friendly smartphones, and in total has 975 million mobile phone subscriptions (HSBC).
The telecom company had applied for permission 19 months back, and on Wednesday the Ministry of Home Affairs through an official statement, confirmed its license.
“India is an important overseas market for Huawei.We aim to become a top three brand in India within three years.” said Allen Wang, President of Huawei’s Consumer Business Group in India, reports Reuters.
Huawei has already established its research and development operations in India, and manufactures for export in the southern state of Tamil Nadu. Setting up local research and production centers is seen as key to helping Chinese firms offer top end features at even lower cost to India’s price-sensitive consumers.
India has proved to be a fertile ground for Chinese players like Lenovo Group Ltd and others, which are trying out new products and strategies, thereby giving a tough competition to local players like Micromax, Lava etc, as well as other international players like South Korea’s Samsung and America’s Apple.
Huawei’s entry into India as a manufacturer would add a boost to Modi’s led ‘Make in India’ programme.