As per ICEA, handsets produced in India for Fy18-19 numbered 290 million units worth Rs 181,000 crore (nearly $25 billion)
The mobile phone industry has reason to cheer as the Finance Ministry's tax cut and policy initiative is set to help boost production to $190 billion by 2025, Indian Cellular and Electronics Association (ICEA) data shows.
As per ICEA, handsets produced in India for Fy18-19 numbered 290 million units worth Rs 181,000 crore (nearly $25 billion).
"With such an enabling policy environment, it will not be impossible to reach the mobile handset manufacturing target of $190 billion by 2025. This is about 50 per cent of the total electronics manufacturing target with a total export target of $110 billion," ICEA Chairman Pankaj Mohindroo said.
Mohindroo added that handset manufacturing has witnessed significant growth in the past four to five years, leading to significant export take-off.
"Mobile handset exports have already crossed $1 billion mark during the first four months of the current financial year. In fact, there has been a record export growth of 800 per cent in 2018-19, compared to exports achieved in 2017-18," he stated.
Smartphone maker Xiaomi called the tax cut "a welcome move to all domestic companies".
The company in a statement said the announced corporate tax cut would enhance the industry's job generation capability and allow for increased investment in product development. It will also encourage more component suppliers to set up factories in India.
"Post the relaxation for domestic manufacturing firms, we are hopeful that we would be able to bring more of our component suppliers to India and help boost the local manufacturing industry further," it added.
Indigenous mobile phone company Jaina Group, which owns Karbonn Mobiles brand, said the reduction in corporate tax will help the company divert more funds towards manufacturing.
Jivi Mobiles Marketing Head Harsh Vardhan said the company will pass on the benefit of the tax rate cut to the consumers, which would in turn boost demand in the market.
Also commenting on the rate cut, Electronic Industries Association Of India (ELCINA) termed the move as "historic" and said it would be a "boost to the slumbering economy and will wake up the sleeping giant".
ELCINA Secretary-General Rajoo Goel said the reduction in taxes will help attract foreign investors to establish companies and manufacture in India as these rates match the corporate tax rates offered by competing countries, such as Vietnam and Thailand.
Belgium-based display technology firm Barco said the lowering of corporate tax will add much-needed fillip to the government's 'Make in India' initiative.(With inputs from PTI)The Great Diwali Discount!
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