A group of Chinese grey market handset makers is to consider manufacturing in India in an attempt to be recognised as legitimate suppliers in their most important export markets.  The decision also reflects the effects on business of India’s uneasy relationship with its eastern neighbour.

The Shenzhen Mobile Communications Association intends to take a dozen of its members to visit India this month to negotiate related ventures.

“The goal is to set up several production or assembly lines with a total capacity of up to 10m units”, Tang Rujin, executive president said.  The manufacturers hope production will help them gain political capital in the country, and comes after India last year started to crack down on Chinese-made grey market handsets.

Financial Times – Feb 17 2010

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