Mumbai, August 9: Indian handset market has crossed 350 million shipments in 2017 as against 280 million in 2016. Revenue accrued from the shipments has surged from 111,000 crore ruppes to 135,000 crore ruppes in 2016, a study by ASSOCHAM-KPMG showed.
Currently, the only export incentive available to handset manufacturers is a 2% incentive under the Merchandise Exports from India Scheme (MEIS) introduced in the Foreign Trade Policy 2015-20.
Indian handset exports flourished from 2008 to 2012 going up to INR 12,000 crores but were interrupted by a decline of almost 30 per cent in two subsequent years. Accompanied by a parallel fall in handset manufacturing, downfall of handset manufacturing industry became a major area of concern for the government, noted the study.
In order to revive the industry, it is imperative to boost handset manufacturing in India. The FTTF, set up in 2014, has a target of increasing count of handsets manufactured in India to 500 million and handset exports to 120 million by 2020.
‘Make in India’, ‘Skill India’ and other initiatives by the government played a pivotal role in achieving an 85% growth in manufacturing of handsets to Rs 54,000 crore in the year 2015-16 over the previous year. It further grew to Rs 90,000 crore in 2016-17.