Govt will notify handset component and accessories manufacturers about phased manufacturing plan

In a move to make local manufacturing of Mobile phones cheaper, the Ministry of Electronics and IT is all set to notify phase manufacturing plan that will provide tax relief and other incentives on handset components and accessories. A senior official of the ministry confirmed the development to PTI.

The notification will reflect the government's commitment to boost mobile phone production in the country. "The formal notification of the Phased Manufacturing Programme (PMP) will be a historic event in the prime minister's path-breaking Make in India and Digital India programs. With the consequent PMP - II, which is in the works, in 3 years time, it is proposed that value addition will increase to 39 - 50 percent," Indian Cellular National President Pankaj Mohindroo said.

The notification proposes to extend tariff intervention and incentives to cover mechanics, die cut parts, microphone and receiver, keypad, USB cable, camera module, display assembly, touch panel, ringer etc in phased manner. "This is a transformative program which will put the mobile phone and component industry on the same trajectory as our automobile industry," Mohindroo said.

The phased manufacturing program was proposed by a joint panel of the industry and the government - Fast Track Task Force. The panel set up under the MeitY has set a target of 500 million handset production by 2019 and export target of 120 million mobile phones by 2019-20, taking annual manufacturing output in the range of Rs 1.5-3 lakh crore. In 2016-17, the total value of mobile phone to be produced in India is likely to reach Rs 90,000 crore from Rs 54,000 crore in 2015-16.

Published Date: May 02, 2017 09:29 AM | Updated Date: May 02, 2017 09:29 AM