Sale of radio sets has failed to pick up in line with the ongoing boom in radio channels. While the majority of urban customers enjoy radio programmes through cell phones and car stereos, high prices of radio sets and unreliable grey market products seem to hold back rural customers. As a result, sale of radio sets has stagnated over the last four years.
Balaram Chowdhury, vice-president of the Consumer Electronics & Appliance Manufacturers Association, said the number of radio sets sold in 2003 was 7 million and it has not grown since then.While the organised market is responsible for 30% of sale, the rest is sold in grey market. "The primary reason for the stagnation, especially in the organised market, is the high tax component of 30%. This encourages grey market operations".