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DeitY announced to set up Fast Track Task Force to boost mobile manufacturing

Dec 30, 2014 15:43 IST

The Department of Electronics and Information Technology (DeitY) on 29 December 2014 announced to set up a Fast Track Task Force to re-establish and catalyse significant growth in mobile handset and component manufacturing eco-system in India.

As part of boost mobile manufacturing, the task force aims to achieve production of 500 million units of mobile handsets by 2019.

It includes promotion of large scale manufacturing/assembly activity to achieve production of annual manufacturing output of 150000 crore rupees to 300000 crore rupees.

It is estimated that this large scale production can create employment opportunity for 15 lakh people.

Composition of the Task Force

The Chairman of the Task Force is Pankaj Mohindroo, the President of Indian Cellular Association (ICA). The Co-Chairmen of the task force are Josh Foulger, the President of Nokia SEZ and Hari Om Rai, the Co-founder of Lava mobile handsets.

The members of the Task Force

• BD Park, Managing Director, Samsung India
• Kenichiro Hibi, Managing Director, Sony India
• Sandeep Bhargava, Microsoft Devices Director for Government relations
• Soon H Kwon, Managing Director, LG India
• Vikas Jain, Co-founder of Micromax Informatics
The Department of Electronics and Information Technology (DeitY) Directors SK Marwah and Asha Nangia will represent government in this task force.

Why the need to set up Task force

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 12 billion US dollar in 2014 but imports account for three-quarters of the market.

Domestic production fell by 29 per cent in 2014 mainly due to suspension of production at Nokia plant.

Exports of mobile phones have been declining after touching a peak level of 12000 crore rupees in 2012.

Mobile exports crashed by 70 per cent from 11850 crore rupees in 2013 to 2450 crore rupees in 2014.

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