MAIT, the apex body representing India’s IT hardware, training and R&D services sectors, has announced the findings of its Industry Performance Review for the first half of the financial year 2009-2010.

The total PC sales between April and September 2009, with desktop computers, notebooks and netbooks taken together, was 3.71 million (37.1 lakh) units, registering a growth of 1 percent over the same period last fiscal.

The sales of desktops stood at 2.61 million (26.1 lakh) units registering a decline of 11 percent. Notebooks and netbooks taken together recorded a consumption of 1.1 million (11 lakh) units, growing 43 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 cross 7.3 million (73 lakh) units in FY 2009-2010, growing 7 percent.

Commenting on the findings of the study, MAIT Executive Director, Vinnie Mehta said, “Although the sales growth was subdued in the enterprises, the overall consumption in the PC market was led by the telecom, banking and financial service sectors, education and households segments. Verticals such as BPO/IT-enabled services, retail and the government, which traditionally account for a significant proportion of the IT market, were very conservative in their IT spends in H1/2009-10. The first-half of the current fiscal also witnessed deviations from the traditional downward trend in pricing for IT products as the dollar continued to be significantly strong compared to the rupee. This was mitigated, to an extent, by price drops due to technology reasons and also due to intense competition. Going forward, with signs of revival in the domestic economy, we expect positive growth for PCs and other IT products in FY 2009-2010.”

Delineating his thoughts on sustaining the growth of IT consumption in the country especially in these challenging times, MAIT President, Ravi Aggarwal said, “Stability in policy frame-work both at the centre and the states is critical for sustenance and growth of business. It is worrisome that while most sectors of the Indian economy have started reviving, the overall sentiment in the IT hardware business remains sluggish. MAIT has emphasized in its recommendations for the forthcoming Union Budget that the stimulus package introduced by the Government last year to counter the adverse impact of the global economic downturn be continued. MAIT has strongly recommended that the 8 percent excise duty on all IT products and components be maintained. Further, it has also stressed on the removal of 4 percent Special Additional Duty (SAD), which is a significant cost for the local manufacturers as also enhancing the low rate of abatement for MRP-based excise duty assessment for IT products such as notebooks, printers, modems etc which makes such products expensive.”

Stressing on the need for urgently implementing the recommendations of the recent Department of IT Taskforce, Aggarwal added, “The taskforce has suggested several measures to overcome the hurdles being faced by the industry not only in the short-run, but has also defined a roadmap for the industry in the medium and long-run. It should be made mandatory for nationalized and PSU banks to earmark funds for easy and subsidised 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 to purchase 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.”