Mobile handset companies have sought a 10-year tax holiday along with regulatory reforms to focus on exports that can enable the industry to grow by over elevenfold to $230 billion by 2025, an ICEA-McKinsey report submitted to the government said.
“If India extends its ambitions to the export market, it could manufacture around 1,250 million handsets by 2025. This could fire up an industry worth around $230 billion and create more than 47 lakh jobs in the process,” the joint report by Indian Cellular and Electronics Association (ICEA) and McKinsey said.
It said the new jobs can be created in assembly, programming, testing and packaging (APTP) operations, among others.
The demand for mobile devices in the domestic market is now tapering and prompting a shift in focus from ‘Making in India for India’ to ‘Making in India for the world’, which needs policy support, including 10-year tax holiday and reduction of various duties specially on capital goods that are used for mobile manufacturing, it said.
Since 2014, around 120 manufacturing units in the mobile manufacturing segment have come up with support of government policy and on the back of strong domestic market demand.