Handset makers say the grey market may swell for entry and mid-level smartphones in India

NEW DELHI: Handset makers are concerned that the grey market may swell for entry and mid-level smartphones in the absence of local supplies and high goods and services tax. The brands are currently grappling with shortage of smartphones due to factory shutdowns and labor-related issues.

“The greater danger is of the grey market raising its ugly head beyond high-end phones to even entry and mid-level phones because of high duty and increased GST— the grey market is nearly 70% in high-end phones,” Pankaj Mohindroo, chairman of India Cellular & Electronics Association told ETTelecom.

“Most products are made in India but high-end phones are made outside. the grey market was around 50% but it is nearly 70% for this segment. Similarly, we are seeing this happening in entry and mid-range,” he said.