The Indian Cellular Association (ICA) is seeking a duty free regime for promoting local manufacturing in the country, says news reports.
Currently, imports occupy nearly two third of the Indian mobile market. And as per ICA, to encourage local manufacturing there should be zero customs, excise, service tax on all inputs and final products and capital goods for the mobile industry.
The industry body represents players like Samsung and Nokia. As part of its pre-budget proposals to the government, ICA has stated, that the manufacturing of parts, components and accessories must go up substantially in the country,in order to leverage large domestic and global telecom market. Currently, except batteries and chargers there is no significant manufacturing of accessories in the country.
The association has also requested the government for service tax exemption on data services availed through mobile networks. It believes that the move will encourage investment in the sector and further promote manufacturing of smartphone/tablet PC for masses.
