Telecom trade deficit moves north

New Delhi: The difference between telecom products imports and exports widened in FY14, with imports valued at Rs 69,516.37 crore and exports at Rs 20,475.17 crore during the year, leaving a gap of Rs 49,041.20 crore.

Communications and IT Minister Ravi Shankar Prasad informed the Lok Sabha in a written reply, in the previous 2012-13 fiscal, imports of telecom products were Rs 57,208.78 crore and exports were at Rs 21,716.76 crore,

In 2011-12, the import figure stood at Rs 55,466.54 crore, while exports were at Rs 20,775.57 crore.

While replying to production of mobile handsets in the country, the minister said the production is expected to be low by more than half even as import of handsets is expected to rise by over 18 per cent in 2014.

Prasad said that 130 mn units were produced in 2013 and it is projected to be 60 mn units in 2014 whereas the import figures stood at 185 mn in 2013 and it is estimated to be 220 mn in 2014. The value of mobile phones produced in the country is expected to be down to Rs 18,900 crore in 2014 as compared to Rs 26,650 crore in 2013.

However, the value of imported mobile phones is estimated to rise to Rs 58,550 crore in 2014 as compared to Rs 42,200 crore in 2013.

Smartphone market in India is likely to touch 200 mn units by 2020 with an average annual rate of growth around 26 percent.

The smartphone market in the country in 2012 was 20 mn units, which grew to 32 mn units in 2013 and is estimated to be 70 mn units in 2014.

The government has so far imposed education cess on imported electronic products to provide parity between domestically produced goods and imported goods. It has approved setting up of two semiconductor wafer fabrication manufacturing facilities in order to create necessary ecosystem for design and manufacturing of telecom equipments.