Low profit levels may lead to consolidation of mobile firms in India

Should India encourage big players like Samsung to set up shop, riding partly on the higher duties the country has set on imports?

Early this year, executives of a China-based mobile company are reported to have met officials from the Government of India (GoI) with a surprising request. Would the government offer the same tax structure for its ancillary units as the mother company would enjoy? The plea was significant. It would have provided a lifeline for India’s standalone manufacturers of mobile phones, many of whom are densely packed in Noida and Greater Noida regions of the National Capital Region. The data shows many of them are only playing the volume game on razor-thin profit margins. The government has declined to do so,