India is the second smartphone market in the world and last year, Xiaomi captured the hearts of Indians with its cheap and durable products. The likes of Apple and Samsung has not really been able to get a good grip on the Indian market because their products are basically focused on the high-end consumers which are relatively few. As it stands, Xiaomi cannot go back on the very basis of its establishment in India which is producing affordable and acceptable products but the current situation is beyond the control of the company. Right now, Xiaomi is forced to increase the price of two of its products in India which are the Xiaomi Redmi Note 5 Pro (corresponding to the National Bank Edition Redmi Note 5) and Xiaomi TV 4 55 inches variant. This increase was necessary because the Indian government has its market tariffs by 10% on an original basis.
Potential buyers of the Note 5 Pro will now have to pay Rs 1,000 (95 yuan/$15) more while the Xiaomi TV’s 55-inch version is now available with a Rs 5,000 (477 Yuan/$75) price increase. The decision of the government to increase the market tariff mostly affect the imported products. Though many of its products are made in India, the parts need to be imported from China, such as PCBA (printed circuit board). Generally, the prices of smartphones will definitely increase in the Indian market because the tariffs on other mobile phone parts, including mobile camera modules, was also increased by the Indian government.