Nokia says India has become 'least favorite market': report
AFPNEW DELHI -- Finnish telecom giant Nokia has told India's government that the country is now its “least favorable market” to operate in and it makes better sense to export its products from China, a report said Friday.
August 24, 2013, 12:00 am TWN
Nokia, which is fighting a 20-billion-rupee (US$311 million) tax demand from Indian authorities, urged the government to “act quickly to correct the wrong perception of India as a place for business,” The Indian Express newspaper reported.
“The political risk of operating in India” has become “suddenly substantially higher and may inevitably influence future decisions to develop one's operations in India,” Nokia said in a letter quoted by the daily.
The reported warning comes at a bad time for India when foreign direct investment has slowed to a trickle amid mounting domestic economic woes including a plunging rupee, a huge current account deficit, slowing growth and perceived government policy paralysis.
The Finnish group did not immediately respond to requests for comment on the message which The Indian Express said was dated June 19 and was received by the finance ministry last month.
India — one of the world's fastest-growing mobile phone markets — is the second largest market for Nokia which began operations in the country in 1995 and employs 8,000 workers directly in Chennai.