Troubles continue to mount for Huawei as India joins the US and Europe in banning Chinese firms over espionage fears. The company has reportedly slashed its revenue target in India by 50 percent for the current year and is also laying off up to 70 percent of its staff in the country. The manufacturer will apparently be retaining employees in research and development and the Global Service Centre.

Another setback for Huawei’s 5G plans

The Indian government has already stopped state-run carriers from getting equipment from Huawei and ZTE and is seemingly requesting private telecoms to do the same. They have supposedly been requested to phase out Chinese equipment gradually so that consumer services are not disrupted. 

Reliance Jio, the country’s largest mobile network, sourced components from Samsung for its 4G network. The other two dominant companies, Bharti Airtel and Vodafone Idea, got their equipment from various vendors including Huawei. According to research, the Chinese giant’s gear makes up 40 percent of Vodafone Idea’s network and around 33 percent of Bharti Airtel’s existing network. 

Whether Huawei will make the cut remains to be seen, but it seems highly unlikely. According to an insider, the company currently has no new projects in India and there is no clarity on any new business from carriers. 

As grim as the situation may sound, experts believe it would be an uphill task for India to disengage from China as the later’s influence in investments, trade, and technology has grown significantly over the years. Per an estimate, Huawei’s India unit employs nearly 700 people and this figure doesn’t include the hundreds of people working for the company through third-party firms. 

That said, telecommunication is one sector where alternatives are available and thus Huawei will probably not be included in India’s 5G rollout.