5-8% price drops in computers likely

The duty cuts announced by the government on Thursday is likely to result in a price drop of 5-8 per cent, according to the industry. Skoch Consultancy, a IT tracking firm, said following the duty cuts it expects a higher than 50 per cent growth in PC sales, and there will be 8 per cent price drops in prices of PCs, giving an additional 20 per cent growth due to the price cuts.

HCL Infosystems CEO Ajai Chowdhury said the duty cuts will result in a 5-7 per cent drop in prices of PCs. Hailing the fiscal sops given to the hardware sector, Manufacturers Association Information Technology (Mait) said it would make the domestic IT industry globally competitive. ‘‘The government has met a long-standing demand of the IT manufacturing industry.” Vinnie Mehta, ED of Mait said in a statement.

Chowdhury added that it will help manufacturing of PCs in a big way and curb the grey market, he said. (PTI)