37 lakh PCs sold in first-half of FY 2008-09

New Delhi: MAIT announced the findings of its Industry Performance Review for the first-half of 2008-09. The total PC sales between April and Sep 2008, with desktop computers and notebooks taken together, were 36.9 lakh units, registering a growth of 12 percent over the same period last fiscal. The sales of desktops stood at 29.1 lakh units registering a growth of 12 percent. Notebooks recorded a consumption 7.7 lakh units growing 13 percent over the same period last year. Given the current macro-economic conditions and conservative buying sentiment in the market, PC sales are expected to remain at the same levels as in the last fiscal at 73 lakh units.

Commenting on the findings of the study, Vinnie Mehta, Executive Director, MAIT said, "Consumption in the large and medium enterprises has helped sustain the PC market in India, especially for the desktops, in the first half of 2008-09. The desktop sales, which had flattened out in the the year before recorded positive growth. Although the sales to the households and small enterprises were less than expected, the overall consumption in the PC market was led by telecom, banking, education, BPO/IT-enabled services, and the e-governance initiatives of the Union and the state governments. The H1/2008-09 also witnessed deviations from the traditional southward trend in pricing for IT products as the dollar significantly strengthened over the rupee. This was mitigated, to an extent, by price drops due to technology reasons and also due to intense competition. Going forward, the global economic downturn has started reflecting on the domestic IT market as evidenced in the recent OND (Oct-Nov-Dec) quarter. We expect a flat market for PCs for the fiscal 2008-09."

Delineating his thoughts on spurring IT consumption in the country especially in these challenging times, MAIT President, SS Raman said, "It should be made mandatory for nationalized and PSU banks to earmark funds for easy and subsidized loans for purchase of IT products and solutions for the SMEs and the home consumers, especially for education. Similarly, governments-central and state-should extend interest free loans to all their employees for purchase of IT products. Further, as several e-governance projects are being rolled out, these need to be replicated across all the states in the country and completed at an accelerated pace. Providing for local-language interface will be critical for the success of such projects, especially those aimed at Government-citizen interface."

Stressing the need for a stable policy regime for a robust market and industry, he further added, "Stability in policy frame-work both at the center and the states is critical for sustenance and growth of business. The MAIT Executive Council has unanimously emphasized in its recommendations for the forthcoming Union Budget that status-quo be maintained on the tax structures for IT products. Further, priority needs to be given to strengthening of the national IT infrastructure along with the physical infrastructure. In this regard we need early resolution of issues related to rollout of 3G and WiMax networks. These will not only enable consumption of front-end devices, CPEs and other back-end devices, but will also create a new economic paradigm through various applications, services and other avenues created through the network-multiplier effect. Efforts are also needed to be redoubled to build efficiency and reduce wastage in all industry verticals through deployment of green and energy efficient IT products."

Commenting on the current and the future market and technology trends in India, MAIT VP, Ravi Swaminathan said, "Government and the public sector spending is expected to be the mainstay of domestic market IT consumption. Cost concerns are leading to significant consolidation of IT infrastructure in the corporates with virtualization gaining acceptance. The SMEs have started showing keen interest towards outsourcing and SaaS. Lastly, with 3G and WiMax networks expected to be rolled out soon, significant opportunity will arise for diverse applications and services."