Industry Uncertain About Impact of Preferential Market Access (PMA) for 'Made in India' IT Products

NEW DELHI, January 15, 2013 /PRNewswire/ --

By January 2013, the Government Will Introduce a Similar Notification for Laptops and Tablets

The government policy which makes it mandatory for all government departments to procure 50 percent of their requirements of desktop PCs and dot matrix printers from domestic manufacturers, has received mixed response from the industry. No doubt, this initiative will push manufacturing of 'Made in India' electronics and create a market for indigenous electronics products, but the industry wonders why desktop PCs and dot matrix printers in the first place? How much demand government departments and agencies will create for desktop PCs and dot matrix printers that will attract a company to start manufacturing of these products in India with 30 percent value addition in the first year, and this increasing by 5 percent every year thereafter?

According to a report published in Electronics Bazaar, desktop PCs and dot matrix printers have been chosen first because there is fairly large demand for these products in government departments and agencies, and also fairly decent amount of manufacturing of these two products is presently happening in India. By January 2013, government will bring in similar notification for laptops and tablets. "These government initiatives will definitely promote manufacturing. It will help companies to think of setting up manufacturing units in India," comments Ramesh Chopra, Vice Chairman, EFY Group.

However, the industry feels it is too early to comment how the policy would impact the industry as the timeline and the percentage of value addition is "not practical". Also, not many companies will be able to meet the 30 per cent value addition criteria of the policy.

To read the full story, visit http://electronicsb2b.com/policy-corner/industry-uncertain-about-impact-of-preferential-market-access-for-made-in-india-it-products-3/

About Electronics Bazaar:

Launched in 2007, Electronics Bazaar magazine, a publication of EFY Group, is today South Asia's No. 1 electronics B2B sourcing magazine. It is a treasure trove of information related to manufacturers, buyers, dealers and distributors dealing in electronics products and hardware. It gives a complete insight of the electronics B2B market. To know the current trends, latest products, new technologies, new manufacturing facilities, emerging sectors, etc, Electronics Bazaar is the ideal B2B magazine.

Primary Media Contact: Richa Chakravarty, richa.chakravarty@efyindia.com, 91-9891393798

Secondary Media Contact: Srabani Sen, srabani.sen@efyindia.com, 91-9899809240