While government is pushing to make India hub for electronics manufacturing with ‘Make in India’ programme, a report has said that exports of mobile phones are estimated to crash to zero in 2015.
“Mobile market grows by 32 per cent or to USD 12 billion in 2014 but imports take over to occupy three quarters of market. Domestic productions fell by 29 per cent. Exports may crash to zero in 2015,” according to the report, submitted by industry body Indian Cellular Association with the government.
Exports of mobile phone have been declining after touching a peak of Rs 12,000 crore in 2012.
The export crashed by 70 per cent from Rs 11,850 crore in 2013 to Rs 2,450 crore in 2014 and further estimated to be nil next year in absence of corrective measures, the report said.
The report mentioned shut down of Nokia’s mobile phone plant in Tamil Nadu due to tax dispute with government during the year as a factor in decline of exports.
India’s electronic mobile market is dominated by imports and mobile phone exports provided some cushion in burgeoning trade deficit. In 2013-14, government faced trade deficit of over Rs 49,041 crore in telecom segment.
“Export of electronics is almost negligible. The only sector which has reasonable manufacturing and export was mobile sector. In fact, during 2008-2012 production was nearly matching India’s demand by volume,” ICA said.
