India is one of several emerging markets that are key to Nokia's plans for global success with its new generation of smartphones. Entry-level devices such as the Lumia 510 have been developed specifically with such markets in mind, while the company is preparing to launch its first Windows Phone 8 handsets, the Lumia 820 and Lumia 920, there later this month.
The Lumia 510 was designed specifically with emerging markets like India in mind
So it will come as particularly unwelcome news for the Finnish manufacturer that some of its premises in India were raided earlier today, amid allegations of tax evasion in the country. As The Economic Times reports, income tax officials raided the company's offices in Chennai and a factory in Sriperumbudur, authorities suspect the company of having failed to pay taxes amounting to around 3000 crore INR (roughly $545m USD). One official couldn't have put it more simply: "They haven't paid in tax in India."
A Nokia representative issued a terse confirmation of events to The Economic Times: "Yes, raids are on. I will call back." Since then, Nokia has issued a more substantial statement to TNW, acknowledging a "visit" by tax officials, and asserting that the company is "fully cooperating to ensure that they get the necessary information to help in their enquiry." Nokia also added that its "commitment to being a good corporate citizen is firm and unwavering."