Local mobile brands lose market share, IAMAI seeks assessment of PMP

In order to enhance India’s domestic manufacturing capacity and build its export capacity, the Internet and Mobile Association of India (IAMAI) has called for an assessment of the impact of the phased manufacturing programme (PMP), which has seen limited success, causing local mobile phone brands to lose their market share.

“The twin objectives of the PMP were to reduce India’s import dependency and increase domestic value addition. To this end, PMP relied on an import substitution approach and levied a 10-15 per cent Basic Custom Duty (BCD) on parts/components/sub-assemblies scheduled to be tariffed from 2016-17 to 2018-19. However, the programme has achieved limited success,” according to a report titled “Make in India 2.0: Revisiting Mobile Manufacturing,” released on Thursday by the IAMAI.