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The Indian Cellular Association (ICA) of India says that the nation has the
potential to manufacture around 100 to 110 million handsets or 10 per cent of
the world’s requirements by 2010 and is set to become an export hub for mobile
phones. Nokia, Samsung and LG are already operating in the country and more are
expected to start operations.
ICA spokesperson said “This year the country should be producing around 15 to
20 million handsets, some of which are being exported. It had manufactured
about a million handsets last year. We expect the number to go up to 30 million
in 2007. The Manufacturing Advisory Committee has set a target of cornering a 3
per cent share of the world output by 2009 and is working towards increasing
this share to 10 per cent.”
ICA said while the future looks rosy, the Government needs to improve customs
clearances to attract investors. It also called for venture fund support from
the Government to assist manufacturing, value-added services and after-sales
services.
ICA said the domestic mobile market has seen unprecedented growth after the
grey market was junked by lowering import duties from more than 40 per cent
(centre and state combined) to the existing 8 per cent. India had sales of only
0.5 million handsets a year in 2001 but is now at 55-60 million handsets in the
current year of which only 10 to 15 per cent would be through the grey market.
The grey market is a euphemistic term for smuggled goods.
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