Mobile phones to cost more from Apr1: FM Mukherjee

Budget 2011 to make handsets expensive

PTI | March 2, 2011



Mobile handset prices will become more expensive as finance minister Pranab Mukherjee today announced one percent hike in the central excise duty for 130 items, including phones.

Come April 1 and central excise duty on mobile phones will be raised from the current four per cent to five per cent.

"The increase in central excise duty is detrimental as it will make mobile phones more expensive and provide impetus to the grey/un-branded market," Nokia India VP and MD D Shivakumar said.

According to business research and consulting firm Frost & Sullivan, the overall budget may be positive, but no tax incentives to the telecom industry remains an area of concern.

"The Budget 2011 covered too little on telecom, while this is one of the fastest growing sectors. (There were) no significant steps on the spectrum related issues," said the company Program Manager (ICT Practice - South Asia and Middle East) Parminder Kaur Saini.

Telecom equipment manufacturers, however, welcomed the finance minister's proposal to extend concession on parts, components and accessories for manufacture of mobile phones for another year.

"The extension of special additional duty on components for mobile phones for another year is a welcome step. This will help mobile manufacturers sustain growth," Samsung India Electronics Mobile and IT Country Head Ranjit Yadav said.

"The budget provides stimulus for rural and inclusive growth. We welcome the government's commitment to reducing the digital divide by ensuring rural broadband connectivity in 2 years to all 2.5 lakh panchayats," he said.

To increase the telecom connectivity in the country, Mukherjee had said that during the current year, 190 Institutes will be connected to national knowledge network.

Since the core will be ready by March 2011, the connectivity to all 1,500 institutions will be provided by March 2012.

"The proposed national knowledge network linking 1,500 institutes by March 2012 as well as the increased focus on sectors such as health, education and banking is positive as these are some," Hughes Communications India President - hughes network systems India limited and director Pranav Roach said.

With finance minister's mentioning digitally connecting villages and institutes, Tulip Telecom CMD HS Bedi expects increase in demand for internet bandwidth and expects government to make available funds for laying out optical fibre network across the country. .

Comments

 

Other News

How Rafi, Raj Kapoor helped pave the way for a great uranium deal

There`s a certain moment in diplomacy that`s too personal to be captured in a communiqué, too small to make the front page, but more revealing than the front page. This week, prime minister Narendra Modi reached Tashkent and, amid the pomp of state visits, managed to evoke the old Bollywood tunes

Distinguishing Fish 1 and Fish 2: The pragmatism behind India’s WTO ratification

 India became the 123rd WTO member to ratify the multilateral Agreement on Fisheries subsidies (AoFS) when it deposited the Instrument of Acceptance for Phase 1 on July 20, 2026. The ratification is restricted to disciplining Illegal, Unreported and Unregulated fishing (IUU), protection for overfished

The 7% growth problem: Why the next 7% will be harder

India has become accustomed to hearing the 7% growth number. It is now less a milestone than an expectation. Yet the paradox is becoming clearer: maintaining 7% growth may be considerably harder than achieving it once. India’s real GDP grew 7.7% in FY2025–26, following growth of 6.5% in FY202

The Constitution cannot be altered: Justice Abhay Oka

Justice Abhay Oka, who retired from the Supreme Court in May 2025, has said that the Constitution of India cannot be altered. Explaining the landmark Kesavananda Bharati judgment (1973) on the basic structure of the Constitution, he said, “This is one judgment that has saved democracy in India.&rdq

How the flora and fauna evolved in the Indian subcontinent

Mammals of India  By A.J.T. Johnsingh and P.O. Nameer HarperCollins India in association with Bombay Natural History Society  

India`s renewable race is moving beyond megawatts

When Shell bought Sprng Energy in 2022, India`s renewable energy market appeared to offer precisely what global energy majors were seeking: scale, growth and a place in one of the world`s largest energy transitions. Four years later, Shell is selling the same business to Aditya Birla Group for an enterpris

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter