Communications Minister A Raja has asked the Department of Information and Technology ministry to consider restriction on imported mobile phones. These imported mobiles are rebranded and sold in India.
The policy is mainly to curb unbranded mobile phone and promote legitimate mobile phone industry in India. He signed a proposal today to ensure that a minimum percentage for handset manufacture in India.
According to Raja, government policy should not promote rebranded phones since they do not create jobs in India. India imports 8 million handsets every month.
India’s annual handset demand stands at 167 million units by 2012.
This will be positive for the likes of Nokia which has a large manufacturing facility in Chennai. However this will be negative for companies like Spice, Micromax and half-a-dozen other mobile manufacturing companies.
Around four days back, the telecom department has started the process and eventually this may lead to some policy change.
Source : moneycontrol.com