Nokia to start making handsets in India from '06

Terming India as its fifth largest market, global mobile handset major Nokia on Wednesday said it would start production of handsets in the first half of the next year at its Chennai plant.

"We expect to start production in the first half of next year. We have a very tough time-table but we will meet that goal," Nokia chairman and CEO Jorma Ollila told reporters here after meeting Prime Minister Manmohan Singh.

“India is the fastest growing mobile market and India is our number five market globally,” Ollila said, adding, "We are committed for long term and we have been very well received. We have had good cooperation from the Central as well as Tamil Nadu government for long term success in India.”

Regarding his meeting with Singh, Ollila said, "It was very positive... had very good discussion about Indian economy... our investment going forward and he (Singh) showed very much interest in telecom industry. He said that he feels very good about the positive investor climate that the government is working to acheive."

"He (PM) said that India has made great progress here and feel that our investment in Tamil Nadu is a proof that things are moving in the right way... and he looks forward to the further development in the telecom industry", Ollila said regarding his discussion with the PM.