The government on Thursday notified the phased manufacturing programme (PMP) for promoting the growth of domestic manufacturing of mobile handsets in the country. “PMP has been notified with the objective of substantially increasing the domestic value addition for establishment of a robust Cellular mobile handsets manufacturing eco-system in India. The programme shall enable the cellular mobile handset and related sub-assembly/component industry to plan their investments in the sector,” the ministry of electronics and IT (MeitY) said.
Under this, the government imposes duties on select products in a bid to boost their production in the country. Under the programme, mechanics, die cut parts, microphone & receiver, key pad and USB cable will be covered in the current fiscal. Then in 2018-19, indigenous manufacturing of populated printed circuit boards, camera modules and connectors will be covered, which will be followed by display assembly, touch panels, vibrator motor and ringer in 2019-20.
In 2015-16 to promote indigenous manufacturing of mobiles, the government imposed a countervailing duty (CVD) of 12.5% on imports of mobile handsets and an excise duty of 1% without input tax credit. This was done to give an impetus to the Assembly, Programming, Testing and Packaging (APTP) model of manufacturing mobile phones.
In the last two years, 40 new mobile handset manufacturing units and 30 mobile components/accessory manufacturing units have been established in the country, resulting in direct employment for over 1 lakh people.
You might also want to see this:
Besides, domestic production of handsets rose from 11 crore units valued at Rs 54,000 crore in 2015-16 to 17.5 crore valued at Rs 90,000 crore in 2016-17. This led to a decline in the share of imported mobile handsets in total domestic demand. The import of mobile handsets decreased from Rs 56,000 crore in 2015-16 to Rs 40,000 crore in 2016-17, the government data showed.