Tuesday, March 11, 2014: Recently, the interim budget of the outgoing government proposed to make mobile phones somewhat cheaper, but the production of phones in India is observing a huge decline. The Indian Cellular Association (ICA) estimated that the number of phones produced in India have fallen from 180 million in 2012, to 125 million units in the last year.
The Indian phone manufacturers are outsourcing the production of phones to south-Asian countries like Vietnam and Taiwan, as the phone brands already depend heavily on China. The ICA has added that these fall in local production has affected exports, which has been marked by a decline of 59 per cent.
According to a Hindu Business Line report, the major understood reason behind the alarming condition is the unfavourable policy by government of India. The policy restricts by way of affecting production and exports, at the same time, it does not attract the other electronics makers.
Criticising the government, ICA put forth the point where the Finnish company, Nokia was slapped a tax notice. Post which it shifted some of the manufacturing duties from its largest plant in the world (Chennai), to other plants that are outside India. It said that component makers, who don’t find the conditions lucrative enough, are yet to set up their own facilities in the country.
The report said that the deficiency of electronics component makers in India with policies that phone makers do not find feasible enough, it is safe to say that things do not look great in the Indian manufacturing industry.
