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MAIT urges Government subsidies to increase PC penetration

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The apex body of IT hardware industry, MAIT,  today urged the new  Government to offer easy loans and discount vouchers to encourage purchase of PCs. It also asked that the Government  should look into the compulsory registration order, which makes 15 electronic products including video games, laptops and microwave ovens subject to safety standards and highlighted the issue of delays in approvals by state pollution boards for manufacturing electronic products.

The IT hardware industry finds it difficult to compete with exchange-rate variations. He added that the government should consider amending adoption of exchange rate variation clause for all IT hardware product purchase contracts, regardless of delivery period under the General Finance Rules (GFR) 2005. “The IT industry has always been a trendsetter in terms of quality and safety. The government should jointly work with the industry on self-regulation,” the body added.

With electronic imports standing at USD 16 billion, the Government  should introduce enabling policies to spruce up hardware manufacturing to facilitate investments in the country. While India has experienced significant growth in PC sales, it still has an IT penetration of below 10 per cent, and inverted duty structure makes domestically manufactured goods uncompetitive.

“We expect the BJP to stimulate growth in the ICT segment, which would engage 4,23,500 people, contribute Rs 2,91,700 crore to the GDP and Rs 1,10,600 crore in taxes during the next five years,” MAIT President, Amar Babu said.

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