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Made in India’s PMP under scanner

Following the concern expressed by the industry that the phased manufacturing programme (PMP) would not help India become an export hub for handsets, the Ministry of Commerce & Industry has decided to review it. 

“It is clear that even though PMP has helped in the development of the ecosystem, it has reached its limits, beyond which its effectiveness is questionable,” the Indian Cellular and Electronics Association stated. The association also highlighted that PMP has led to filing of a case against India in the World Trade Organization by Japan on the grounds that India has imposed duties in “excess of bound rates”. The scheme was overall a partial success: the levies helped create a local ecosystem for batteries, chargers and printed circuit board assembly, while duties on components did not have the same effect.