New Delhi, Nov 21 (IANS): The Indian mobile manufacturing industry needs a competitive direct tax regime to grow and pose a tough competition to other mobile manufacturing countries, said Pankaj Mohindroo, Chairman of the Indian Cellular and Electronics Association (ICEA).

Speaking to reporters here on Wednesday, Mohindroo said the industry body has also given recommendations to the government on the National Policy on Electronics 2018 (NPE) and sought for a competitive direct tax rates, along with a proactive Intellectual Property Rights (IPR) regime.

"We will have to configure a competitive direct tax regime since we are also benchmarked with China and Vietnam which also offer an extremely competitive direct tax regime," said the letter dated November 16 to the Secretary, Electronics and IT Ministry.

Mohindroo said that there are many countries which want to grow their mobile and electronic equipment industry such as Nigeria, Indonesia, Thailand, Turkey, South Africa and so on, which can be major competitors for the Indian industry.

Although he acknowledged that the Indian mobile industry is going through difficult times, he noted that globally too the situation is grim with many companies shutting down over the last few years.

The ICEA Chairman further said that the industry body has a vision to create over 50 lakh jobs and 1,800 new factories over the next six to seven years years.

Currently, the number of factories producing mobile handset and accessories stands at 268 and the industry employs 6.7 lakh people, he said quoting a survey by the ICEA.