ICA plans to boost handset output

The Indian Cellular Association (ICA) has submitted proposals to the central government, mobile component manufacturers, its stake holders as well as to other cellular associations, in an attempt to increase the handset production volume and an overall growth of the industry in India.

"The draft is under consideration right now and could be modified, depending on other useful suggestions," claimed Pankaj Mohindroo, national president of ICA. The draft has suggested that a production volume of 135 million mobile handsets should be targeted by 2011.

Handset manufacturers should also study the possibility of reaching 250 million mobile handsets production by 2011.

ICA is also in favour of catalysing the growth of parts and components industry both as suppliers to the mobile handset industry in India as well as to the world and to create a strong second position for India with a minimum share of 25 per cent in the global market.

The draft has suggested that associations and mobile manufacturers should strive to create a strong second position for Indian manufactured accessories in the domestic market and global after sales accessories market.

At present, in this sector, China dominates with a share of over 70 per cent.

ICA has pointed out that Indian manufacturers should strive to establish a share of atleast 25 per cent in the global after sales accessory market, with original design and quality being the hallmark of Indian manufactured accessories.

Indian manufacturers should also try to grow exports of mobile handsets from India achieving a minimum volume of 135 million handsets by 2011, in line with the possibility of reaching an export quantity of 100 million.

Indian manufacturers should also try to establish a robust design and R&D eco system in India catering to the specific needs of the Indian and emerging market and at the same time establish a serious market share of at least 20 per cent in the global R&D and design sector for mobiles handsets thereby creating substantial intellectual property in India.

According to ICA, all these activities should be done in a manner that supports and strengthens a legal and ethical design and manufacturing activity and also promotes it globally with deep respect for patents and intellectual property, thereby substantially strengthening India's case as a destination of choice with the best manufacturing costs.

According to ICA, 63 million handsets were sold in India during January to December 2006 and in 2007 a total of 90 million handsets are likely to be sold in India.

Commenting on the counterfeit products racket, Mohindroo claimed that a reduction in the import duty on mobile accessories could bring down its selling price, thereby resulting in lesser purchase of spurious products.

ICA said that it has recommended a mobile accessories duty reduction to 8 per cent from 34 per cent right now.

Accessories include battery, charger, handsfree and bluetooth.