Explore three significant developments that have the potential to impact India’s technology sector, financial system, and economic stature on the global stage. First, two major Chinese smartphone companies operating in India—Oppo and Realme—are facing serious scrutiny following the discovery of financial irregularities in their audited records. Second, the Reserve Bank of India (RBI) is set to inject ₹6,000 crore into the banking system through government bond auctions, aiming to enhance liquidity and support economic growth. Finally, conflicting statements from key officials at NITI Aayog have sparked a debate about India’s position as the world’s fourth-largest economy, highlighting the ongoing discussions around the country’s economic progress and future potential.
1. Chinese Smartphone Giants Oppo and Realme Under Scrutiny
Two of China’s major smartphone manufacturers, Oppo India and Realme India, are facing serious allegations after financial irregularities were discovered in their records. These findings emerged from audit reports filed with the Registrar of Companies (ROC), which operates under India’s Ministry of Corporate Affairs.
According to Economic Times journalist Ritankar Mukherjee’s report, Oppo India's financial records revealed significant concerns. The audit found that the company had a dangerously high debt-to-equity ratio, indicating that it had taken on excessive debt compared to its capital. In fact, Oppo India reported a negative net worth of ₹3,551 crore for FY 2023–24, meaning its liabilities exceeded its assets. It also paid ₹1,336 crore in custom duties under protest — suggesting a legal dispute over tax calculations. If the situation continues, the company could struggle to service its debts.
Counterpoint Research highlights that Oppo holds a 15% market share in India’s smartphone market, making it the third-largest player — further emphasizing the potential impact on the sector.
Realme, on the other hand, has also come under the radar. According to Business Standard, its financial statements were incomplete and inaccurately prepared. The auditors noted discrepancies in profit and loss records for FY 2023–24. Realme holds an 11% market share and ranks fifth among smartphone brands in India.
Both companies have already been under investigation by Indian authorities for alleged customs duty and income tax evasion, as well as money laundering. There have also been concerns about pre-installed illegal loan apps on their handsets. These audit findings only deepen the crisis and raise questions about the future of Chinese smartphone firms in India.
2. RBI to Inject ₹6,000 Crore into Financial System via Government Bonds
In a move to boost liquidity in the banking system, the Reserve Bank of India (RBI) is set to inject ₹6,000 crore through the auction of government bonds. The RBI will conduct the auctions from its headquarters on May 30.
So, what exactly are government bonds? Simply put, they are IOUs issued by the government to borrow money from investors. In return, the government offers a fixed interest rate. For example, if the RBI issues a 10-year bond with a 7% interest rate and you invest ₹10,000, you will receive ₹700 annually as interest.
Two sets of bonds will be auctioned:
One worth ₹6,000 crore, maturing on December 9, 2027
Another (exact value not specified in the segment) maturing on May 5, 2035
Why is the RBI doing this? Sometimes banks and financial institutions face a liquidity crunch, making it difficult to lend money. This can negatively impact businesses and economic growth. By injecting funds, RBI ensures banks can provide loans more easily, which boosts consumption, business expansion, and overall economic activity. More liquidity can also lower interest rates, making borrowing cheaper for individuals and companies.
Earlier this year, in March and April 2025, RBI had already added ₹1.9 lakh crore into the economy through open market operations (OMO) and dollar swaps. This upcoming bond auction is a continuation of those efforts to stabilize the financial system.
3. Conflicting Views on India Becoming the World’s Fourth-Largest Economy
A debate has emerged within the NITI Aayog regarding India’s status as the fourth-largest economy. On May 26, the CEO of NITI Aayog claimed that India had surpassed Japan and become the fourth-largest economy in the world. He also backed the statement with various economic parameters.
However, a day later, Arvind Virmani, a member of the same think tank, offered a contradictory view. Speaking to PTI, he clarified that India is not yet the fourth-largest economy but is likely to achieve this status by the end of 2025. He explained that such a claim would require complete GDP data for the 12-month period, and until that is available, it remains a projection.
When questioned about the differing views within NITI Aayog, Virmani acknowledged the confusion but suggested that there may have been some miscommunication or choice of words involved.
Disclaimer:
The information provided in this article is based on publicly available reports and news sources as of May 2025. It is intended for informational purposes only and should not be considered as financial, investment, or legal advice. Readers are advised to conduct their own research or consult a professional before making any financial decisions.
