Prime Minister Narendra Modi move of demonetization has led a significant drop on many sectors across the country. The mobile industry has also become the victim of this move. The Indian handset makers have asked the government to allow the customers to buy products with old 500 and 1000 rupee notes for a month.
They have claimed that the mobile industry has witnessed the 50 percent drop in the revenue which is equal to 175-200 crore where the actual turnover of the industry is 85 percent. The handset makers put a proposal to IT, Telecom and Finance ministries and have suggested the government that the sales can be made against valid Aadhar card or Voter cards.
The device that is sold can be traced via International Mobile Equipment Identity (IMEI number) to avoid the misuse. Since the Aadhar card is unique and IMEI number is also unique which would ensure 100 percent traceability and significantly lower the abuse.
The Indian Cellular Association said in a letter to Finance Minister Arun Jaitley, “This will also provide a trigger for further purchase of smartphones and feature phones to transition to digital payment platforms. In turn, this will reduce the pressure on cash transactions.”
At present, all the companies are looking at the market conditions carefully, and mobile companies like Intex and Micromax has said that “Earlier this week that if liquidity crunch continues, they would have to consider lowering local production to avoid inventory pile-ups”.
The government has recently announced the order of Rs. 500 notes can be used for a prepaid mobile recharge which is up to Rs. 500 per head till the last date of 15th December 2016.