Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

To: Kennard
Here's an India Times article on how Nokia's $500m plant in India was forced to close because India imposed an arbitrary $4b tax (amounting to 15.6% of sales of phones made there):
Once a celebration of Indian manufacturing, Nokia's Chennai factory, beset by legal troubles, has become nobody's child. Old owner Nokia does not want it, new one Microsoft is reluctant to take it. And the solution they have come up with only provides temporary relief to the 7,500 workers there.


Arivazhagan, 26, reminisces about the time he travelled over 600 km to Chennai from Tirunelveli, a district in Tamil Nadu, around eight years ago to search for a job. Along with his three friends, they were walking down a road in Sriperumbudur (40 km south-west of Chennai) which was turning into a booming industrial hub, thanks to the Hyundai car factory set up in 1999.
What manufacturer wants to hand over 16% of revenues just for manufacturing in a low-cost labor locale? Any other foreign company considering setting up shop in India is thinking "If Nokia can get taken like this..." That is why Nokia's modern Indian plant was shut down instead of being sold to another company - there were no takers.
61 posted on 12/07/2014 3:13:12 PM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
[ Post Reply | Private Reply | To 53 | View Replies ]


To: Zhang Fei

India’ economy is not great because of stuff like that! I have seen stories of Indians finding work in places like Mauritius for better pay.


62 posted on 12/07/2014 3:15:35 PM PST by GeronL (Vote for Conservatives not for Republicans)
[ Post Reply | Private Reply | To 61 | View Replies ]

To: Zhang Fei

India’ economy is not great because of stuff like that! I have seen stories of Indians finding work in places like Mauritius for better pay.


63 posted on 12/07/2014 4:06:49 PM PST by GeronL (Vote for Conservatives not for Republicans)
[ Post Reply | Private Reply | To 61 | View Replies ]

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson