Govt must take steps to Boost Electronics mfg: Industry Body

Industry body Indian Cellular Association today asked the government to take steps to boost the country's presence in the field of electronics manufacturing, saying the exit of Nokia has had an adverse impact on mobile phone exports.

Despite massive potential for growth, ICA rued that India's representation in USD 2 trillion electronics segment is inadequate. "Electronics is the most promising and growing segment of two trillion dollars globally and India's participation in it is mere 1.8 per cent... "If we talk only about mobile phones, while China produces goods worth Rs 12 lakh crore, India's mobile phone handset manufacturing industry is Rs 20,000 crore," ICA President Pankaj Mohindroo told reporters here.

He said though several big foreign players in the field of mobile phones came to India during 2003-04, the country failed to capitalise on the possibilities created then. ICA is the apex body of mobile industry comprising manufacturers, brand owners, application and solution providers.

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Some of its prominent members include Apple, Samsung, Microsoft, Nokia, Motorola, HTC, Gionee, Blackberry, Sony, LG, Panasonic, Micromax, Karbonn, Spice, Intex and Lava. Mohindroo said letting Nokia, which sells its products in over 100 countries, go has had an adverse impact on the export of mobile phones.

"We have recently written to Union Commerce and Industry Minister Nirmala Sitharaman pointing out that the country, which at one time was the seventh largest exporter of mobiles, now lags far behind and instead of making progress we are infact going back," he said.

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Emphasising that working in a planned manner was essential, he said this has to be done not only by Uttar Pradesh government, but also by the Centre. On Uttar Pradesh, he said the state should have a bigger role to play in this segment for which infrastructure for IT and electronics would have to be developed.

"Uttar Pradesh Chief Minister Akhilesh Yadav would have to draw a proper timeframe and work in a planned manner to encourage electronics segment in the state and to make full use of its potential," he added.

Source: PTI