Friday, August 23, 2013

Why Nokia’s threats to quit India should be taken seriously

It is a quit India movement of sorts. Fed up companies, both Indian and global, are on their way out of the country, as they see no end for their woes here.
The latest addition to the list is Nokia. According to a report in theIndian Express today, the Finnish mobile handset maker has sent a letter to the government saying India is the “least favourable market” and exporting from China makes better business sense. (Read the entire IE report here.)

Apart from this, Nokia was also entitled to get a Rs 650 crore as value added tax refund from the Tamil Nadu government. According to the IEreport today, the company has not yet received it yet.
The refund was part of its memorandum of understanding the company signed with the Tamil Nadu government in 2005. The pact was for setting up a manufacturing plant in the state, which now gives employment to about 38,000 people directly and indirectly.
According to this report, the company was getting this as an incentive for setting up this unit and was under wraps until 2009, when an RTI plea managed to get the details.

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