Mumbai: India has become the second largest market for Nokia in terms of sales, beating the United States in the quarter ended June 2007, the world top mobile phone company said.

The company is also exporting to 58 countries from its manufacturing plant at Sriperumbudur, near Chennai. Nokia shipped 60 million handsets from its Indian factory. Olli-Pekka Kallasvuo, president and CEO of Nokia Corporation, expects demand to remain strong as India''s user base surges.

Over the past three years, India has been gaining significant ground year-on-year moving from No 4 position in 2005 to No 3 position in 2006 and is today poised right behind China.

This is a remarkable feat for Nokia''s manufacturing plant in India and demonstrates the operational efficiencies of the factory and conducive business environment provided by the state and central government. Today, the factory has reached production volumes of 60 million handsets (August 2007) and is exporting half of its production to 58 countries across the Middle East, Africa, Asia, Australia and New Zealand, he said.

"India is playing an increasingly important role in the global economy buoyed by impressive economic growth, skilled manpower and tremendous business opportunity. As the market leader in devices and infrastructure, Nokia is committed to build the telecom ecosystem in the country and foster the creation of a favorable environment for collaboration and economic development," said Kallasvuo.

The factory currently employs 4,700 people, 70 per cent of which are women. The Nokia Telecom Park has received an investment of $500 million with seven global component manufacturers likely to generate in excess of 30,000 jobs when fully functional.

Nokia employs 9,000 people in India - up from 450 in 2004 - and would continue to invest in India, Kallasvuo said, adding that production can be enhanced as demand grows.

"Today, India hosts a comprehensive Nokia R&D, Manufacturing and design presence. Moreover, we are also the country''s leading provider of wireless infrastructure through Nokia Siemens Network, the newly merged entity. This not only reiterates our commitment and belief in the market but also underscores India''s emergence as a strategic resource hub for Nokia globally," said Kallasvuo.

Nokia Siemens Networks has recently announced its plans to invest $100 million in India over the next three years. This investment will include setting up a proposed telecommunication equipment manufacturing facility in Tamil Nadu for wireless network equipment, new offices across various cities, additional development of an existing R&D centre, and expanding the Global Networks Solution Centre.

Nokia Siemens Networks, based in Espoo, Finland, is one of the largest telecommunications infrastructure companies with operations in 150 countries.