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India’s telecom exports may just drop with the aid of about forty pace if uncertainty about Nokia’s plant close to Chennai continues and manufacturing is affected, the Telecom equipment & services Export promoting Council mentioned.

“This yr, we saw a dip in telecom equipment exports because of decrease contribution from Nokia, which in most cases accounts for about 70 percent of handset exports. In case the uncertainty continues relating to their plant, we apprehend there may be a drastic decline in exports,” TEPC Secretary RK Pataki stated at an event organized through Singapore Exhibitions products and services in New Delhi.

The Finnish handset main plans to close its $7.2 billion deal to sell its cellular gadgets and services and products business to Microsoft on April 25. The handset and different asset elements will probably be passed over to Microsoft’s Finnish entity Microsoft cellular Oyo.

It can be no longer clear if the transaction will embody the Chennai plant, which is on the centre of a Rs. 21,000 cores tax dispute with Indian authorities over royalty payments. the ability is one among Nokia’s largest globally.

The company has prior to now indicated that the transfer of the Chennai plant could also be adversely impacted if the tax dispute continues to be unresolved.

Consistent with TEPC knowledge, telecom equipment exports from India declined about 7 percent to Rs. 19,654 cores in 2013-14 from Rs. 21,075 cores within the previous 12 months.

“Handsets account for greater than half of the exports from India, dominated via Nokia,” Pataki stated.

Cell phone exports dropped to Rs. eleven,918 cores in 2013-14 from Rs. 14,870 cores in 2012-13.

In line with Nokia India employees Union honorary president A. Soundararajan, output on the Chennai plant has fallen to four hundred,000 mobile handsets a day from about 1 million.

Nokia’s shipments from India have been valued at about Rs. 8,000 cores, as per TEPC information, which is ready 40 percent of telecom gear exports. A Nokia spokesperson declined to touch upon the figures.

On the way forward for the Chennai plant, the Nokia spokesperson stated the placement is sophisticated and it’s continuing to weigh its choices as there is nonetheless time before the deal closes.

“With Chennai, it’s value remembering that now we have said we will be able to consider a services and products agreement with Microsoft should our Indian assets no longer be able to transfer at the shut of the global deal,” the spokesperson brought.