Xiaomi India’s Raghu Reddy resigns amid mounting regulatory scrutiny

One of Xiaomi’s top executives in India is leaving the smartphone maker at a time when the company is facing increasing regulatory scrutiny and competitive pressure in the country.

Chief Business Officer Raghu Reddy, who helped the Chinese company to the top of the Indian smartphone and smart TV markets, has resigned to “pursue various growth opportunities externally”, Xiaomi India said in an emailed statement on Wednesday. “It has been a privilege to have Raghu as an integral part of the Xiaomi India leadership team,” it said.

Reddy, who is currently serving a summons, did not respond to a WhatsApp message seeking comment.

Xiaomi is among the Chinese companies targeted by the Indian government amid ongoing hostility between the two nuclear-armed neighbors since 2020, when the deadliest fighting in decades broke out along a disputed border location in the Himalayas. Indian authorities have accused Xiaomi of illegally transferring money abroad, allegations it denies, saying the transfers are royalty payments.

Meanwhile, Prime Minister Narendra Modi’s government has been asking smartphone makers, including Chinese companies, to export more from India and set up local supply chains. But the recent seizure by an Indian state agency of some 27,000 phones that were to be exported by Xiaomi’s rival Vivo is likely to make Chinese brands nervous.

In his most recent role, Reddy led online sales at Xiaomi and helped the brand become a hit on Indian e-commerce sites. He previously worked for SoftBank-backed Indian online retailer Snapdeal.

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