Nokia Thinking of Stopping Business in India

A recent report published in a main Indian newspaper has claimed that Nokia has told the Indian Government that it has become a “ least favorable market.” The report further claims that Nokia has said that it would rather shift its manufacturing business to neighboring China.


A Nokia spokesman was not forthcoming in confirming the contents of the letter but he had already said on Friday that Nokia has had discussions with Government on finding ways to introduce  “greater clarity to the business environment in India.The country is a priority market for us, and Chennai plays an integral part in our global manufacturing strategy.”

Nokia has had tax issues with the Indian Government and it lost an appeal in May amounting to $323.4 million regarding taxes that were imposed on it for supplying software by the Indian unit to its parent firm. Nokia claims that it was promised a refund but never got it from Tamil Nadu government.

The newspaper has reported that Nokia cited “political risk” of continuing operations in India. The letter was reportedly written in June to trade ministry of India.

Nokia makes handsets in Chennai, Tamil Nadu. The company has made an investment of about $285 million there.

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One Response to "Nokia Thinking of Stopping Business in India"

  1. You’ve taken one sentence out of the context.
    The article is putting Nokia in the position of an egoist multinational, like IBM.

    This is so wrong !

    Nokia is just the opposite to India. Among the large corps it is one of few, that does cultivate a culture based on solidarity, friendship and sustainable development. Nokia is the company that brought mobile phones to India, that build the whole infrastructure. It has many merits. Nokias commitment to India is very strong.

    Just look at the Nokia 105 – a phone for millions who still leave in extreme poverty. Access to communication and maybe hope.
    And when we talk about hope. Look at the asha 501 – a smartphone for the people – and it is one that is not spying on you and in order to sell advertisement, like the android.

    You misunderstand Nokias statement.

    What it really says is nothing more than: “Indian government: please respect the law !”
    You should know there are many pathologies in the Indian fiscal system. I’m not only talking about corruption. I’m talking about the rule of law, that is so often absent in this country.

    If Nokia shows bad consequences of fiscal abuse maybe all people can profit. The government will understand they have to stick to the law.

    Please rethink your statement, friend.


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