India is an important market not only for Nokia Mobile but also for Nokia and its networking business. Nokia is already manufacturing its 4G and 5G radio products in its Chennai factory and only last year around $400 million worth telecom gear was shipped in India and around the world. Nokia is doing well in India’s networking market according to IDC’s Q32019 report. It holds 16.7% of the router market and it is fourth in India’s switch market with 2.7% share.
To strengthen its position in the local market, and cater to global demand, Nokia is thinking of manufacturing its IP and optical products in India through its existing facility. Since the sales of networking gear are increasing in India, domestic production could increase the feasibility of the production and eventually lover the price of the equipment. Also, this could open more jobs in the sector, which is always a welcomed move.