What is the broad objective of India's Preferential Market Access Policy?

The Preferential Market Access (PMA) policy is an initiative of the Government of India that aims to promote the use of locally manufactured electronics and IT products in government procurement and other sectors. The policy was introduced in 2012 and has since been revised several times to align with the changing needs and priorities of the Indian market.

Broad objectives of the PMA policy include:

Promoting domestic manufacturing: The PMA policy aims to boost domestic manufacturing and reduce India's reliance on imports of electronic and IT products. By giving preference to locally manufactured products in government procurement, the policy aims to create a more favorable environment for domestic manufacturers to compete with international players.

Creating employment opportunities: The PMA policy aims to create employment opportunities in the domestic electronics and IT sector by encouraging the growth of domestic manufacturers.

Enhancing security: The PMA policy aims to enhance the security of the country by reducing the reliance on foreign manufacturers for critical technology products.

Reducing trade deficit: By promoting domestic manufacturing, the PMA policy aims to reduce India's trade deficit, which is the difference between the value of a country's imports and exports.

Enhancing technological capabilities: The PMA policy aims to enhance the technological capabilities of domestic manufacturers by encouraging them to adopt new technologies and upgrade their production processes.

To achieve these objectives, the PMA policy provides several incentives to domestic manufacturers, including preferential treatment in government procurement, tax breaks, and access to financing and other resources. The policy also sets out certain criteria that domestic manufacturers must meet in order to qualify for these incentives, such as the percentage of locally sourced components and the level of domestic value addition.

In summary, the broad objective of India's PMA policy is to promote the use of locally manufactured electronics and IT products in government procurement and other sectors, with the aim of boosting domestic manufacturing, creating employment opportunities, enhancing security, reducing the trade deficit, and enhancing technological capabilities.