Launched in 2015, MeitY’s PMP or Phased Manufacturing Programme is aimed at encouraging the adoption of locally made mobile components
The Ministry of Commerce has asked the Ministry of Electronics and Information Technology (MeitY) to work on its Phased Manufacturing Programme (PMP) for mobile phones. It said that the ministry should amp up the game by expanding the programme by adding display units, camera units and printed circuit boards in the manufacturing section.
PMP’s mission
PMP’s mission is to promote the adoption of locally made components for mobiles in India. It was introduced in 2015 to develop cheaper mobile components in comparison to the ones made in China. Presently, the government’s push for the expansion of the programme comes in line with the government’s tax relaxation, alongside incentives, offered on the components and other accessories required in mobile manufacturing. The move is to boost local production and cut down on imports.
India has the Modified Special Incentive Package Scheme, which offers 25 per cent tax relief to domestic electronics manufacturing facilities for a period of up to 10 years. It has been reported that the government has been pushing the concerned ministries and departments to prepare a list of products that could further accelerate the whole process of domestic production. The aim is eventually to bring down the $63 billion trade deficit with China.
PMP’s first phase in the year 2015 was started by the imposition of a countervailing duty, meaning tax imposed on goods to prevent dumping or counter export subsidies, on the imports of a few components – die cut parts, microphone and receiver, keypad, touch pads, ringers and USB cables.
Reports have shown that the imports of electrical equipment made in China, like the sound recorders, television and their parts saw a 30 per cent rise in 2017-18. By encouraging local production of such items, the government is looking at bringing down the imports. Currently, India manufactures over 225 million mobile devices, making up about 80 per cent of the total market requirement.
