Joint Task Force on Mobile Manufacturing Eco-System

In December 2014, Department of Electronics and Information Technology, Ministry of Communication & IT, Government of India set up a Joint Task Force consisting of representatives from the industry and the government to re-establish and catalyze significant growth in mobile handset and component manufacturing eco-system in India.

Task Force’s main objective is to rejuvenate mobile phone manufacturing ecosystem within the country with a view to achieve production of 500 million units of mobile handsets by 2019.

Mr Pankaj Mohindroo, National President, Indian Cellular Association, has been appointed as the Chairman of this task force. Nokia SEZ President and Director – India Operations Mr Josh Foulger is the co-chairman. Lava Co-Founder Hari Om Rai, Samsung India Managing Director BD Park, Sony India Kenichiro Hibi, Microsoft Devices Director for Government relations Sandeep Bhargava, LG India MD Soon H Kwon, Micromax Informatics Co-founder Vikas Jain are members of the task force. The Department of Electronics and Information Technology (DEITY) Directors SK Marwah and Asha Nangia represent government in this task force.

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The terms of reference of the task force includes promotion of “large scale manufacturing/assembly activity to achieve production of 500 million units of mobile handsets by 2019 i.e. annual manufacturing output of Rs 150,000 crore to 300,000 crore.”

ICA in its budget recommendation has said that in absence of corrective measures, mobile exports from India will crash to zero in 2015.

Mobile market in India is estimated to grown by 32 per cent or to USD 12 billion in 2014 but imports account for three-quarters of the market. Domestic production fell by 29 per cent in the year mainly due to suspension of production at Nokia plant.

Exports of mobile phones have been declining after touching a peak level of Rs 12,000 crore in 2012. Mobile exports crashed by 70 per cent from Rs 11,850 crore in 2013 to Rs 2,450 crore in 2014.