Date:17/02/2005 URL: http://www.thehindubusinessline.com/2005/02/17/stories/2005021701370500.htm

Back `Grey market share in PC sales falling'

Our Bureau

New Delhi , Feb. 16

THE domestic IT market registered a 26 per cent growth in 2004 to touch $21.9 billion, according to the consultancy firm Skoch.

"While the market for software exports grew 32 per cent during the year, that for business process outsourcing (BPO) sector rose 49 per cent. The domestic personal computer (PC) market grew by 28 per cent in value terms (44 per cent in volume terms), and domestic services by 26 per cent," a Skoch study said here.

The increase in PC sales was on account of lowering of prices following the cut in excise and customs duties. This also resulted in the organised sector capturing more market sharefrom the grey market during the year, with an additional 6.5 lakh PCs moving to the organised sector.

"The share of the grey market fell from around 55-56 per cent over the last 4-5 years to just 38 per cent in 2004. The year also saw the emergence of new brands (LG, Millennium, GES, EPC and Vesta), which captured as much as six per cent of the market," it said.

The e-governance market rose 23 per cent and touched Rs 2,200 spending. "Even rural India is giving thumbs up to e-governance initiatives such as the telemedicine project in West Bengal and Aarohi in Uttranchal. Even in a State like Assam, projects like `Government at the Doorstep' programme and `Rajiv Gandhi Computer Literacy Program' is touching tribal population in areas as remote as Majuli," Mr Sameer Kochhar, CEO, Skoch said.