Govt plans to expand phased manufacturing programme

NEW DELHI: The Ministry of Electronics and IT is mulling to expand phased manufacturing programme, aimed at increasing use of locally-produced electronic components in mobile phones, to other product segments as well.

"Phased manufacturing programme (PMP) at present is meant to promote use of locally made components in mobile phones.

Meity (Ministry of Electronics and IT) is exploring to expand it to other segments as well," an official source said.

The move is in line with the government's target to have net zero import of electronics by 2020 under Digital India programme.

The total import of electronic and communication items stood at $37.2 billion in 2015-16 (up to February), out of which $20 billion worth of products were imported from China.

Meity had notified PMP in May this year to encourage manufacturing of mobile components in the country.

The notified PMP covers mechanics, die cut parts, microphone and receiver, key pad and USB cable in the current financial year.

It also aims to promote the indigenous manufacturing of populated printed circuit boards, camera modules and connectors in 2018-19, and display assembly, touch panels, vibrator motor and ringer in 2019-20.

"Work is on to identify components which can be brought under PMP in compliance to WTO (World Trade Organisation) rules. With advancement in technologies there are many components that may not fall under purview of agreements signed by India which mandates duty free import of IT products and their parts," the source said.

With the government's push, mobile phone manufacturing has increased in India. From around 2-3 players in 2014, there are around 105 companies that are involved in mobile manufacturing in India.