The computer hardware industry is likely to grow 40 per cent to touch 4.2 million units in the current financial year, according to rough estimates of the Manufacturers' Association of Information Technology (MAIT).
"The last quarter of 2003-04 has been very encouraging and personal computer sales had touched eight lakh units. Although the final figures for the entire year are yet to be compiled, we are aware that our projection of three million units has been exceeded," Mr Vinnie Mehta, Executive Director, MAIT, told newspersons on the sidelines of a seminar on the IT needs of the banking sector.
Mr Mehta said that falling prices and higher economic activity could translate into a 40 per cent growth for the industry during the current year.
While the total number of PCs sold in 2003-04 is expected to cross three million, the figure for 2002-03 stood at 2.3 million units.
During the current year, the growth in PC sales is likely to be driven by technological innovations.
Mr Mehta said that prices were expected to drop on account of the IT agreement under the WTO, which will come into effect in 2005.
"If all our suggestions, like 100 per cent depreciation on all IT products and removal of excise duty, are accepted by the Government, PC prices may fall by another 5-10 per cent," he added.
MAIT is also working with the Government and other agencies on an exclusive consumer finance scheme for home PC users to boost sales.
"If this segment is enabled with finance, it can grow the way the two-wheeler market has."
Earlier, speaking at the conference, Mr B.D. Narang, Chairman and Managing Director, Oriental Bank of Commerce, said that the banking industry should work towards a common management information system that is compatible across all banks.