A new report launched jointly by MAIT and KPMG highlights various challenges to increase the IT penetration in the country at multiple levels and suggests recommendations to overcome them.
According to the joint announcement, the Indian IT hardware industry can look forward to making a substantial impact by taking some of the steps such as bringing down the hardware cost by 43% with the help of government subsidies, reducing the total cost of ownership (TCO) of a PC and broadband solution (currently estimated to be about Rs15,650 per annum), providing income tax exemption to individuals against PC purchase, and promoting the purchase of PCs amongst specific segments like students and households with annual income below Rs5 lakh.
Titled “Indian Market Place- IT the unrealized potential” (sic), the report was unveiled by Sam Pitroda, Adviser to the Prime Minister on Public Information, Infrastructure & Innovations.
The report estimates that in FY 2014-18, there could be an increase in sales of desktops and notebooks from the current 6% to 18% CAGR, thereby contributing an additional GDP of Rs66,300 crore, taxes of Rs25,000 crore and new employment for 1,11,600 people.
However, if the recommendations are implemented by FY 2018, the total number of persons employed would reach 4,23,500 on average, contributing Rs2,91,700 crore to to GDP and Rs1,10,600 crore in taxes through direct, indirect and induced effects.
This would also result in increasing the current installed base of about 48 million PCs about 76 million by the end of FY 2018.