Tuesday, June 10, 2014

RCA expectations from the new government

Quote from Mr. Pankaj Mirchandani, Managing Partner, RCA on his expectations from the new Government in the IT industry:

The Modi Government takes office amidst huge expectations and euphoria. The mobile phone and gadget accessories marketers are also looking at this government with a lot of hope. There is a big disconnect between import duties on mobile devices and accessories. As is the case, most of the mobile phones or gadgets essentially require accessories for their safety and hassle – free operation. But the spoiler is the cost, which could be more than 10% of the price of the device and is borne by the consumer. We as sellers/marketers are however helpless due to the high import duties ranging from 22% to 30% levied and high product obsolescence. This restricts our capacity to reduce prices beyond a certain point. The industry therefore wishes and waits for the rationalization of import duties on mobile accessories.