Indian investors have turned their attention to China’s biggest startup

Indian biz tycoon Ratan Tata, who heads the US$100 billion Tata group, has just picked up a stake in Xiaomi from China. More than the investment itself, a thumbs up from the chairman emeritus of the Tata Group, who is one of the most respected business figures in India, adds to the Xiaomi mojo which has already cast a spell over the country. Xiaomi has said right from its entry into India that this is its second most important market after China. That’s not just because of the huge demand for smartphones but also for its tech savvy crowd who can appreciate Xiaomi’s value-for-money proposition. Last week, the Chinese company put its money where its mouth is, with a global premiere of its newest flagship phone, the Mi 4i, in Delhi. Xiaomi’s popularity in India was evident from the winding queue outside the Siri Fort auditorium before the launch. It was like going to a cricket match, with fans lining up for hours in the 39 degree Celsius summer heat. The buildup to the event had the Xiaomi touch, with founders Lei Jun and Lin Bin taking an auto rickshaw ride to underscore the affordability factor that Xiaomi brings to smartphones with high-end features.