India's IT sector is booming

A total of 2.3 million desktop computers were sold in 2002-03, a 37% increase on the previous year, according to the Manufacturers Association of Internet Technology (MAIT).

The figures mark a return to growth for the country's computer market, which contracted by 11% in 2001-02.

And the future for the sector looks bright, with growth for the current year now forecast at 18%, taking total sales to 2.7 million.

Vinny Mehta, MAIT's executive director, said last year's sales increase reflected a growing trend towards 'e-governance' by government departments, and strong demand from telecoms, banking and manufacturing companies.

Cheaper prices

Indian brands such as Wipro, HCL and Zenith performed particularly well, with their share of the market rising by 90%.

Mr Mehta added that demand for computers will get a further boost if the government proceeds with plans to cut import duties and other taxes on IT hardware sales, a move which could cut average prices by up to 20%.

India's growing enthusiasm for information technology is also reflected in a sharp increase in internet connections, with subscriptions rising by 10% to 1.43 million last year.

Private households account for 54% of these connections, with businesses making up the rest.

However, MAIT said India still has some way to go before it faces the problem of how to dispose of old computer hardware.