MAIT, the apex body representing India’s IT hardware, training and R&D services sectors, today announced the findings of its Industry Performance Review for the first-half of financial year 2009-10. The total PC sales between April and September 2009, with desktop computers, notebooks and netbooks taken together, were 3.71 million (37.1 lakh) units, registering a growth of one per cent over the same period last fiscal. The sales of desktops stood at 2.61 million (26.1 lakh) units registering a decline of eleven per cent. Notebooks and Netbooks taken together recorded a consumption of 1.1 million (11 lakh) units, growing forty-three 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 2009-10, growing seven percent.

Commenting on the findings of the study, MAIT Executive Director, Mr Vinnie Mehta said:  “Although the sales growth was subdued in the enterprises, the overall consumption in the PC market was led by telecom, banking and financial service sectors, education and households segment. Verticals such as BPO/IT-enabled services, retail and the government, which traditionally account for 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 for the fiscal 2009-10.”

Delineating his thoughts on sustaining the growth of IT consumption in the country especially in these challenging times, MAIT President, Mr 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% excise duty on all IT products and components be maintained. Further, it has also stressed on the removal of 4% 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, he 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 nationalised 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 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.”

The bi-annual MAIT Industry Performance Review – ITOPs, conducted by India’s leading market research firm IMRB International is a survey of the IT hardware sector’s efforts to manage the business environment, gauge the market potential and consumer trends. This round of the study involved face-to-face interviews with over 25,000 respondents selected randomly across 22 cities in India. The MAIT-IMRB study was initiated in 1996-97 and encompasses five broad product segments — computers, networking products, printers, other peripherals and Internet connections. Apart from the half-yearly review, a supply-side estimation module is used to monitor industry performance every quarter, alternating with the half-yearly review.

About the study:

ITOPS is a syndicated end-user based study on the IT hardware market conducted by the eTechnology Group of IMRB International since 1996-97.  The study is based on over 25,000 face-to-face interviews with end-users spread over 22 cities, with data projected to the 'all India urban market'.

The MAIT-IMRB study involves data collection after the 'last mile' that the product travels, i.e. from the premise where the product is finally installed. It is therefore an accurate estimate of 'what' was bought, 'by whom', and for 'what purpose'. Since the MAIT-IMRB study is based entirely on data collected from 'users', it is able to accurately estimate the large unorganised market as well as direct imports. It does not suffer from shortcomings of estimates based on shipment or supply which in addition to under or over-counting, may also reflect biases in perception of vendors and resellers.

With thirteen consecutive years of ITOPS data, the study is now able to closely track emerging segments such as small offices, home users, first time buyers, etc. and identify the role of key drivers for purchase such as the internet. By virtue of tracking the installed base built over the
years, and monitoring the extent of upgradation/ replacements taking place in the market, the study has been able to identify emerging business opportunities that promise to expand the market for IT products in India.

About MAIT:

Set up in 1982 for purposes of scientific, educational and IT industry promotion, MAIT has emerged as an effective, influential and dynamic organisation.  Representing IT hardware, training, R&D, and associated services in India, MAIT’s charter is to develop a globally competitive Indian IT Industry, promote the usage of IT in India, strengthen the role of IT in national economic development and promote business through international alliances. Website: www.mait.com.