PCs are significant socio-economic growth driver in India: MAIT

VARINDIA- INDIA'S FRONTLINE IT MAGAZINE

 

MAIT- KPMG has reportedly released a report titled -"Indian Marketplace - IT the Unrealized Potential". 

The report suggests that the Indian IT hardware industry can look forward to making a substantial impact by taking some of the steps such as bringing down the hardware cost by 43% with the help of the Government subsidies, reducing the total cost of ownership (TCO) of a PC and broadband solution (currently estimated to be ~INR15,650 per annum), providing income tax exemption to individuals against PC purchase, and promote purchase of PCs amongst specific segments like students and less than INR5-lakh income households, among other steps.  

The report estimates that in FY 2014-18, there could be an increase in sales of desktops and notebooks from 6 per cent to 18 per cent CAGR contributing additional GDP of INR66,300 crore, taxes of INR25,000 crore and generate new employment for 1,11,600 people. However, if the recommendations are implemented by FY 2018, the total number of persons employed would reach 4,23,500 on average, contributing INR2,91,700 crore to Gross Domestic Product (GDP) and INR1,10,600 crore in taxes through direct, indirect and induced effects. This would, in turn, help boost the sales of desktops and notebooks to grow to 7%, resulting in the current installed base of ~48 million increasing to ~76 million by the end of FY 2018

Amar Babu, President, MAIT, said, “There is no denying the fact that India has a huge potential for the growth of IT hardware industry. We need the right approach to enhance IT penetration and significantly contribute to economic growth. This report has identified some of the bottlenecks which are hampering PC penetration in the country and has proposed the most viable recommendations to overcome them.”

According to the findings of the report, the current PC penetration in rural India is limited to ~9 million households, whereas ~14 million can afford computers, as they fall above the estimated affordability level of INR5-lakh annual family income. Hence, 36% households in rural areas that can afford a PC still do not own one............See More