The Manufacturers’ Association of IT(MAIT) has urged Ministry of Finance, Ministry of Commerce & Industry and Ministry of IT & Communications to focus on the critical challenges faced by Indian hardware industry due to the existing foreign exchange volatility.
At a press conference today in New Delhi, MAIT pointed out that the IT hardware industry has already proven to be the backbone of nation’s growth as it is critical enabler in enhancing inclusion, reach, productivity & speed in all kinds of economic activities.
It is particularly most relevant to all Government projects and programs like those of Education, e-Governance, Healthcare, Financial Inclusion, etc. as more and more use of technology is being adopted. Every nation considers IT as integral to their success which has made this industry worldwide as one of the fastest growing in the world. World Bank’s reports state that 10% increase in computer and broadband penetration increases GDP by 1.38%.
This is particularly relevant to emerging economies like India. It is also noteworthy to mention that as per the estimates of Ministry of IT & Communications, the demand for IT hardware & Electronics is expected to touch $400 bn by 2020 in India. With the current rate of domestic production, a very significant $320 billion worth of IT Hardware & electronics will be imported to cater to this need in 2020.
Electronics imports may thus, exceed oil imports and add drastically to the deteriorating fiscal deficit. Hence promotion of domestic manufacturing is the key for future growth. This is possible only with high scale of investments and as a nation, we have to make such propositions attractive. The current size of Indian IT Hardware industry is estimated to be Rs 70,000 crore.