The Nokia Lumia 520 is one of Nokia’s Lumia handsets that is doing surprisingly well, more so than Nokia’s higher-end offerings, especially in emerging markets such as India where the handset had been previously reported to have been sold out. While that might seem that India is an important market for India, recent developments might have changed Nokia’s mind with the Finnish company going as far as saying that the country is the “least favorable” market in which to operate in.
This is due to a $20 billion rupee tax demand from the Indian government which they claim Nokia owes them. The tax is not so much from hardware, but rather software downloaded onto the Nokia device which Nokia believes under a treaty, should be taxed back home in Finland and not in India. The Indian government disagrees and thinks that the software downloads should be taxed under India law.
It is because of this that Nokia is now considering moving their manufacturing facilities in India to other countries, namely China, and have the handsets imported to India instead. This does not mean that Nokia will be dropped the Indian market entirely, but moving their operations could have some repercussions as Nokia currently hires about 8,000 works in the country.