India's computer sales to grow 25% in 2004-05: study

Thursday, 08 July 2004, 19:30 IST
Printer Print Email Email
NEW DELHI: Sale of computers in India is likely to register a growth of 25 percent in the current fiscal year ending March 31, 2005, on increased buying by a wide spectrum of industrial sectors, said a study Tuesday. Personal computer sales are expected to cross 3.8 million units in fiscal year 2004-05 riding on the back of sound macroeconomic condition and buoyant buying sentiment, said the Manufacturers Association of Information Technology (MAIT) study. The domestic computer market grossed 3.03 million units in the fiscal year ended March 31, 2004, registering a growth of 32 percent over the previous year. The hardware industry umbrella group said the buoyant IT consumption witnessed in the first half of 2003-04 gained greater momentum in the second half, resulting in significant growth. "The consumption in the first half of 2003-04 was 1.26 million units, while in the second half, it was 1.77 million, a record," said the study. "The high growth can be attributed to increased consumption by industry verticals such as telecom, banking and financial services, manufacturing, retail and IT enabled services," said Vinnie Mehta, executive director of MAIT. "Major e-governance initiatives of the central and state governments have also helped. On the other, the highly price-sensitive Indian market has responded like never before to the drop in prices, especially at the entry-level." The excise duty reduction on computers from 16 to eight percent and reduction in peak customs duty from 15 to 10 percent in January resulted in price drops ranging between eight percent and 12 percent. MAIT said significant consumption in the small and medium enterprises and in the home market added to the numbers. The trend of increased computer purchases in smaller towns and cities also continued undiminished. The assembled computers, the lesser known regional brands and unbranded systems, accounted for 53 percent of total sales in fiscal year 2003-04. Indian brands accounted for 21 percent of the market while multi-national brands accounted for the rest 26 percent. The study revealed that computer sales to the business segment improved by 26 percent accounting for 77 percent of the total consumption. In the households segment, sales grew by 60 percent. "The growth of IT consumption in the household segment is expected to remain steady, as the vendors have started positioning and promoting computer as an aid for education and entertainment," it added.
Source: IANS
siliconindia