“The GST dispensation for mobile handset and components’ industry must facilitate and catalyze establishment of India as a Global Manufacturing HUB for Mobile Handsets and Components”, Pankaj Mohindroo, Chairman – Task Force and National President, Indian Cellular Association.
NEW DELHI (GNI): India has witnessed a robust growth in establishment of manufacturing capacities related to mobile handsets and components related to mobile handset like adapters / chargers, batteries, wired headsets etc. during the past 10-12 months. There was an approximate 200% growth in mobile handset manufacturing activity in India in value terms during 2015-16 over 2014-15. Over 35 new mobile handset manufacturing plants have so far been established generating employment for approx. 50,000 people directly and over 90,000 indirectly.
The Prime Minister of India, Narendra Modi during his Independence Day speech from the Red Fort has highlighted this glorious achievement of the mobile handset industry and mentioned that 50 new manufacturing units have been established in India during the past year.
“As establishment and subsequent enhancement of the differential duty dispensation in 2015, which made imports of mobile handsets more expensive compared to domestically manufacture them, has led the pendulum swung in favour of India in terms of establishment of many new manufacturing units during the past one year, it is extremely important that the momentum is sustained in the GST regime as well and the differential duty dispensation must be retained and continued with without any disruption for a long period of time, which will help transform India as the Global manufacturing HUB for mobile handsets and components,” said Pankaj Mohindroo.
Speaking to the media persons, Mohindroo further added, “with the Government of India’s current focus towards establishing a robust components’ manufacturing eco-system by 2019-20 in sync with the Make in India vision and Terms of Reference (ToR) of the Fast Track Task Force (FTTF), it would be extremely prudent both on part of the Central as well as state Governments to provision relevant duty dispensations to aid and allow the growth of the components manufacturing eco-system.”
“There are already early signs reg. the scope for development of components manufacturing in India as several manufacturing units related to mobile adapters / chargers, batteries and wired headsets have been established during the past 4-5 months after a similar differential duty dispensation as applicable on mobile handsets was implemented on these components in 2016. With the GOI is very keen to establish a robust components manufacturing eco-system based on institution of an differential duty based elaborate program which is currently under formulation, the GST roll out for this sector must be considered and finalized with utmost careful thought and with a visionary approach”, added Mr. Mohindroo.
The Fast Track Task Force (FTTF) set up by the DeitY under the Chairmanship of Mr. Pankaj Mohindroo, National President, ICA and Co-chairmanship of Mr. Hari Om Rai, CMD – Lava International and Mr. Josh Foulger, Country Head and MD, Foxconn India to “re-establish and catalyze significant growth in Mobile Handset and Component manufacturing eco-system in India by 2019-20” has set up the following targets –
Ø To achieve production of 500 mn mobile handsets i.e. annual manufacturing output of INR 1, 50, 000 crores to 3, 00, 000 crores (i.e. 20 – 25% of total global manufacturing).
Ø To generate additional employment of 15 lakh people
Ø To increase export to 120 mn units
Ø To establish a sizable component industry with a turnover of over INR 50, 000 crs.ends