Policy & Guidelines
Phased Manufacturing Programme — Ministry of Heavy Industries, Government of India
About the Phased Manufacturing Programme
A policy framework to promote indigenous manufacturing through progressive domestic value addition mandates.
Background & Objective
The Phased Manufacturing Programme (PMP) was introduced by the Ministry of Heavy Industries, Government of India, to foster the development of a robust domestic manufacturing ecosystem. The programme mandates that manufacturers of notified product categories achieve progressively higher levels of Domestic Value Addition (DVA) over defined phases.
The PMP is aligned with the broader Make in India and Atmanirbhar Bharat initiatives, aimed at reducing import dependence, creating employment, and building indigenous technological capability in strategic sectors including electric vehicles, advanced batteries, solar energy, and defence equipment.
Manufacturers who obtain a valid PMP Certificate are eligible for benefits including preferential procurement under government schemes, access to Production Linked Incentive (PLI) programmes, and exemptions from certain import duties on capital goods used in domestic manufacturing.
Establishment of basic domestic manufacturing and assembly capabilities.
Deepening of domestic value chains with mandatory localisation of critical components.
Near-complete domestic manufacturing with indigenous design and export readiness.