"There is really a disadvantage for mid-tier and low-tier handsets makers who are importing into India because at that level the price sensitivity to the device price is very high and with the recent depreciation of the rupee that is having a direct impact on retail prices of imported handsets.

"And at low and mid tier, it's likely to have an impact on sales because of the elasticity of demand at that level," PwC India Leader Telecom Mohammad Chowdhury said.

Chowdhury said it is less likely to impact Smartphones because the price sensitivity is little less, but added, "I would say is that in longer term if Rupee remains depreciated then there might be an upside benefit for Indian handset manufacturers with respect to exporting to other emerging markets."

One cannot expect these manufacturers to resist price increases because the increase can be absorbed for some time as the margins are not very high, he added.

Lava International Co-founder and Director SN Rai said the situation is affecting the margins of everybody as most of the manufacturers import the components.

"We will watch the situation for a fortnight and if the situations persists, we don't have a choice but to pass the cost to the consumer," he added.

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