With India’s mobile phone imports estimated to touch Rs.75,750 crore in 2015 and exports likely to hit zero level, Indian Cellular Association (ICA) has appealed to the Union Government to accord high priority to the mobile phone manufacturing in its ‘Make in India’ initiative.
In its pre-budget recommendation, ICA said India had the potential to turn into a global hub for mobile phone and component manufacturing and exports, provided it supported the sector actively.
“It is a matter of great concern that electronic manufacturing is witnessing a decline in India and production of mobile phone, which is the only hope, is suffering. India is the seventh in global ranking in mobile phone exports in 2009. Next year it will have zero exports. We are hopeful that the government would revive this sector,” said Pankaj Mohindroo, National President, ICA.
Putting forth 57 recommendations before the government including immediate lifting of asset freeze of Nokia’s manufacturing unit in Tamil Nadu, ICA said the government must grant ten-year tax holiday on all profits from manufacturing to encouraging investment.
“Same duty should be applicable for mobile phones, tablets and laptops. We recommend interest subsidy of a minimum of five per cent on all fixed capital investments be granted,” Mr. Mahindroo added.
“It is our considered opinion that lifting the assets freeze would allow Nokia to effectively consider alternative long-term future options for the factory. This would also benefit the broader SEZ, and limit damage to its reputation as a good destination for investment,” ICA said.
Currently the mobile market has grown to $12 billion in size but imports constitute three quarters of market causing a drain in precious foreign exchange reserves. “Domestic production has fallen by 29 per cent and exports may crash to zero in 2015,” ICA said.
ICA said its vision is to see India achieves 25 per cent share in global mobile phone manufacturing by 2019 from the current share of three per cent. It said the domestic mobile handset sector could create additional 1.3 million jobs.
