China’s Xiaomi loses top India business executive amid mounting challenges in the world’s second most-populous country

A top executive at Xiaomi India is leaving as the Chinese gadget maker remains under pressure from India’s ongoing regulatory scrutiny and faces tougher competition in a shrinking smartphone market.

Xiaomi India chief business officer Raghu Reddy has resigned to “pursue different growth opportunities externally”, the company said in an email statement on Wednesday, adding that its India business “has built a strong leadership team over the years and we will look to strengthen this going forward”.

Reddy joined Xiaomi India as online sales head in 2016, two years after the Beijing-based smartphone brand started operations in the country. He was promoted to head of business in 2020.

Xiaomi credited him for playing an “an influential and significant role in” propelling its smartphone and smart TV sales in India, where the brand is the top-seller in both categories, according to market researcher Counterpoint.

The departure comes two months after Xiaomi said a local court’s decision to freeze US$676 million of its funds over alleged illegal remittances – a claim the company has repeatedly denied – would “effectively halt” its operation in the country.

After Beijing and New Delhi traded blame for deadly border clashes in 2020, Chinese companies in India, the world’s second-most-populous country and a fast-growing consumer market, have had to deal with growing regulatory pressure, including Indian government bans on hundreds of apps that originate from China or have suspected links with the country.

Earlier this year Xiaomi, as well as Chinese smartphone maker Vivo which also has a strong presence in India, had their offices raided by local authorities over tax evasion or money laundering allegations.