PCs click with more Indians

PCs click with more Indians

Author | Source: Business Standard | Monday, Jul 17,2006 7:12 AM

PCs click with more Indians

PC penetration in country trebles to 18 per 1,000 people in 2005-06.

Personal computer penetration in the country has almost trebled from 6.3 per 1,000 people in 2000-01 to 18 per 1,000 in 2005-06, according to data provided by the Manufacturers’ Association for Information Technology.

The growth momentum is expected to continue unabated. "PC sales will grow at a compound annual growth rate of 30 per cent for the next five years," Zenith Computers Chairman and Managing Director Raj Saraf said.

Taking into account the annual population growth rate of 1 per cent, this means PC sales as well as penetration in the country will more than double every three years.

From 3.77 million in 2004-05, PC sales in the country grew 32 per cent to cross the 5 million mark in 2005-06. During the current year, all projections point towards sale in excess of six million PCs.

In the last five years, a sizeable chunk of the demand has resulted from the e-governance programme of the government and the rapid pace of computerisation of the branches of public sector banks. The boom in the IT and IT-enabled services sector has also chipped in with fairly large numbers.

The same factors are expected to contribute to the growth in PC sales in the years to come. Also, with import duties on components coming down, PCs have become more affordable and compare with the lowest prices in the world.

Consider this: While a PC with good software and a Pentium 4 processor costs around Rs 16,000 in India, a similar machine would cost at least $480 (Rs 21,600) in China and $350 (Rs 15,750) in the US.

However, experts said the market would really boom if PC makers were able to tap the semi-urban and rural markets, like mobile services operators.

“People in the villages use computers as an Internet using device. There is lack of awareness regarding the use of computer and infrastructure needed for promotion of PC,” MAIT Vice-President Vinnie Mehta said.

Tags: e4m

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