India has become the world's largest recipient of remittances for the fourth year running. Indians abroad sent home $135.4 billion in FY25, nearly ₹13 trillion. That's up 14 percent from the previous year's $129 billion. This single inflow is bigger than India's foreign direct investment and larger than foreign portfolio investment.

India's Remittance Power: $135 Billion and Counting

Mexico's vibrant remittance ecosystem is one of the biggest in the world. It supports millions of families and is now under severe pressure. Watch this report for more.

Increase in Peso's value & rising inflation disrupt remittances

<p>India's crime-fighting agency, the Enforcement Directorate, has issued a show-cause notice to Xiaomi's India unit, its officials, and three banks as part of an investigation that uncovered illegal remittances made by the Chinese smartphone maker to foreign entities.</p>

<p>The notice was issued under the Foreign Exchange Management Act (FEMA) and relates to remittances amounting to 55.51 billion Indian rupees ($673.2 million).</p>

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<p>The Enforcement Directorate claims that Xiaomi began unlawfully moving money abroad in 2015, using misleading information and disguising the funds as royalty payments. Last year, the agency froze Xiaomi's assets in India, alleging that the company had made illegal remittances by falsely presenting them as royalty payments to foreign entities.</p>

<h2><strong>Xiaomi refutes allegations&nbsp;</strong></h2>

<p>Xiaomi is accused of transferring 55.51 billion rupees in foreign currency to three businesses, including a Xiaomi group entity, under the guise of royalty payments. However, Xiaomi has denied these allegations, asserting that its royalty payments were legitimate and expressing its commitment to protecting its reputation and interests.</p>

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<p>The agency asserts that Xiaomi's actions contravene Section 4 of the Foreign Exchange Management Act, which imposes restrictions on the acquisition, ownership, possession, or transfer of foreign exchange, foreign securities, or immovable property located outside India.</p>

<p>An Indian court in the month of April rejected the Chinese smartphone maker's plea against the seizure and this represented a significant setback for the company, which is one of India's rapidly growing smartphone brands.</p>

<p>Xiaomi has made substantial investments in India in recent years, including the establishment of manufacturing facilities and the launch of affordable smartphones targeting price-sensitive consumers.</p>

<p><strong>Watch | Sunak-Biden Meet: 'Atlantic declaration' seen as a counter to Russia and China</strong></p>

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<h2><strong>India's heightened scrutiny of Chinese enterprises&nbsp;</strong></h2>

<p>Foreign companies operating in India, particularly those from China, have faced heightened scrutiny and regulatory challenges. Indian authorities have been increasingly vigilant in enforcing financial regulations and investigating alleged violations, such as tax evasion, money laundering, and breaches of foreign exchange rules.</p>

<p>Tensions between India and China, stemming from a border conflict, have further complicated the business operations of Chinese enterprises in India since 2020.</p>

<p>Over 300 Chinese apps, including popular ones like TikTok, have been banned in India due to security concerns. Chinese companies like WeChat and Alibaba have also faced scrutiny, restrictions, and compliance issues related to data privacy, national security, and local laws in recent years.</p>

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India's crime-fighting agency, the Enforcement Directorate, has issued a show-cause notice to Xiaomi's India unit, its officials, and three banks as part of an investigation that uncovered illegal remittances made by the Chinese smartphone maker to foreign entities.

India's crime-fighting agency, the Enforcement Directorate, has issued a show-cause notice to Xiaomi's India unit, its officials, and three banks as part of an investigation that uncovered illegal remittances made by the Chinese smartphone maker to foreign entities. The notice was issued under the Foreign Exchange Management Act (FEMA) and relates to remittances amounting to 55.51 billion Indian rupees ($673.2 million). Also Read | Iowa: Minor tries to rent hitman to kill child, gets caught on parody site The Enforcement Directorate claims that Xiaomi began unlawfully moving money abroad in 2015, using misleading information and disguising the funds as royalty payments. Last year, the agency froze Xiaomi's assets in India, alleging that the company had made illegal remittances by falsely presenting them as royalty payments to foreign entities. Xiaomi refutes allegations Xiaomi is accused of transferring 55.51 billion rupees in foreign currency to three businesses, including a Xiaomi group entity, under the guise of royalty payments. However, Xiaomi has denied these allegations, asserting that its royalty payments were legitimate and expressing its commitment to protecting its reputation and interests. Also Read | Deserted dystopia: Chinese city evacuated after cracks appear near high-rises The agency asserts that Xiaomi's actions contravene Section 4 of the Foreign Exchange Management Act, which imposes restrictions on the acquisition, ownership, possession, or transfer of foreign exchange, foreign securities, or immovable property located outside India. An Indian court in the month of April rejected the Chinese smartphone maker's plea against the seizure and this represented a significant setback for the company, which is one of India's rapidly growing smartphone brands. Xiaomi has made substantial investments in India in recent years, including the establishment of manufacturing facilities and the launch of affordable smartphones targeting price-sensitive consumers. Watch | Sunak-Biden Meet: 'Atlantic declaration' seen as a counter to Russia and China × India's heightened scrutiny of Chinese enterprises Foreign companies operating in India, particularly those from China, have faced heightened scrutiny and regulatory challenges. Indian authorities have been increasingly vigilant in enforcing financial regulations and investigating alleged violations, such as tax evasion, money laundering, and breaches of foreign exchange rules. Tensions between India and China, stemming from a border conflict, have further complicated the business operations of Chinese enterprises in India since 2020. Over 300 Chinese apps, including popular ones like TikTok, have been banned in India due to security concerns. Chinese companies like WeChat and Alibaba have also faced scrutiny, restrictions, and compliance issues related to data privacy, national security, and local laws in recent years. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. ×

India's ED issues show-cause notice to Xiaomi over illegal remittances

As India celebrates 75 years of Independence, take a look at Remittance - India's secret sauce.

India@75: Remittance - India's secret sauce

India@75: Remittance

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