In the upcoming Union Budget for 2015-16, mobile handset makers like Micromax and Karbonn have asked for tax holidays and subsidies in order to promote local manufacturing that is expected to boost job creation.
India is one of the fastest growing mobile phone market in the world but still it lags behind China as majority of handset makers including the Indian brands manufacture their devices in China. It’s very essential that the government provides a filip to the manufacturing sector in the country by making its policies more powerful and competitive too, as opined by Micromax chairman Sanjay Kapoor. He added that he hopes that the government will no more stick to their age-old policies and help in motivating the sector and formulate more supportive rules and regulations to speed up the eco-system in order to promote manufacturing of smart devices in the country.
Kapoor also said that if the government fails to comply with the demands then it will be difficult for smartphone manufacturers to provide the latest technology at affordable prices, that’s an aim of the Digital India initiative. Karbonn MD Pradeep Jain also said that indigenous products will help the country to realise the vision of programmes like Digital India and Make in India, and mobile and Internet will expand their reach to more vast consumers. He said that the government is expected to introduce some friendly policies in Budget 2015 that will include tax holidays and interest subsidies to give a huge boost to domestic handset manufacturing and increase the mobile phone user base in India.
Benefits from such policies include more employment opportunities, higher quality of products and affordable pricing, as explained by Videocon Mobile Phones chief executive Jarold Pereira. Karbonn’s Jain also said that the government should ease the financing options furthermore in case of mobility goods like mobile devices and tablets and establish India as a global power in the international mobile market. Maxx Mobile chairman and MD Ajay Agarwal also hopes that custom duty will also be increased on imports for mobile handsets. The government is also expected to offer ESOPS, subsidies on investments and incentives for Indian mobile manufacturers.