Technoglitch
Core Member
Huawei's clearance to manufacture telecoms gear comes as a number of China's largest phone makers, including Huawei itself, have indicated they are keen to supply locally made products to India's fast-growing mobile market, which has more than 975 million mobile phone subscriptions.
Close to 150 million subscribers use internet-friendly smartphones, a number that was forecasted to grow about 26% annually by 2019, according to a recent HSBC report.
Pending final approvals, Huawei would become the first big-name Chinese phone maker to manufacture hardware in India's growing market to helping compensate for slowing growth at home. Xiaomi Inc, China's leading smartphone maker, earlier this month reported a sequential drop in half-year sales.
Huawei already has research and development operations in India, and manufactures for export in the southern state of Tamil Nadu. Setting-up local research and production centres is seen as key to helping Chinese firms offer top-end features at even lower cost to India's price-sensitive consumers.
The clearance comes two months after Prime Minister Modi visited China in an effort to promote stronger business ties. China's ambassador to India told Reuters earlier this year that tough security reviews and visa restrictions were slowing investment, despite Modi's promise to roll out the red carpet to foreign businesses.
India has been a testing ground for Chinese firms like Lenovo Group Ltd (0992.HK) and others, trying out new products and strategies.
China's telecom giant Huawei gets clearance to produce in India
Close to 150 million subscribers use internet-friendly smartphones, a number that was forecasted to grow about 26% annually by 2019, according to a recent HSBC report.
Pending final approvals, Huawei would become the first big-name Chinese phone maker to manufacture hardware in India's growing market to helping compensate for slowing growth at home. Xiaomi Inc, China's leading smartphone maker, earlier this month reported a sequential drop in half-year sales.
Huawei already has research and development operations in India, and manufactures for export in the southern state of Tamil Nadu. Setting-up local research and production centres is seen as key to helping Chinese firms offer top-end features at even lower cost to India's price-sensitive consumers.
The clearance comes two months after Prime Minister Modi visited China in an effort to promote stronger business ties. China's ambassador to India told Reuters earlier this year that tough security reviews and visa restrictions were slowing investment, despite Modi's promise to roll out the red carpet to foreign businesses.
India has been a testing ground for Chinese firms like Lenovo Group Ltd (0992.HK) and others, trying out new products and strategies.
China's telecom giant Huawei gets clearance to produce in India
