Hanging up on mobile phone exports, India likely to miss 'hub' tag

Manufacturers decline export orders because of subsidy reduction from 4 to 2 per cent

Leading mobile phone makers have stopped taking fresh orders for exports in a move that could derail India’s ambition to become a hub for cellphone exports.

The reason is a new notification which has reduced the Merchandise Exports from India Scheme (MEIS) — an export subsidy programme — by half from 4 per cent of the freight on board value of the product to 2 per cent, effective from January 1. The reduction has made Indian phones uncompetitive in the global market where they compete with Vietnam and China, the two leading exporters, for orders.  

Mobile device manufacturers while exporting