Indian telecom operators came out in open support of Chinese equipment makers, saying the government cannot deprive Indian consumers of the cutting-edge technology which these companies offer by denying security clearance to them.
The Rs 8,000-cr deal is expected to be finalised early next month.
Will come out with a response on the issue shortly.
Apple, Research In Motion and ZTE Corp joined the ranks of the world's 10 largest mobile phone makers in 2007, underlining how technology advances and emerging markets are producing a new cast of winners and losers in the industry.
India was the second largest filer of international trademark applications among the BRICS nations in 2014.
Apple Inc may have disappointed many consumers by not putting sapphire glass covers on its new iPhone, but the scratch-resistant material is gradually making its way into mobile devices despite manufacturing challenges and high costs.
The sub-$100 smartphone market is dominated by Google's Android operating system, which has lower licensing costs, and runs cheaper hardware.
Xiaomi said in a statement that "it isn't easy" to build up a patent portfolio as a start-up company, but it aims to have filed 8,000 applications by 2016.