The number of active Internet entities increased to 5.27 million units in September 2006, up from 4.12 million units in March.
The penetration of Internet in the top 22 cities among businesses was 45 per cent while in households it was 14 per cent. The businesses segment now accounts for 33 per cent of the total active Internet entities and households account for the remaining 67 per cent.
DSL/cable has replaced dial-up as the most commonly used means of accessing the Internet among businesses. Thirty eight per cent of the businesses used DSL/cable, while 30 per cent were on dial-up connections; another 15 per cent used leased -line and 16 per cent used ISDN services respectively.
Vinnie Mehta, executive director, MAIT said, "With 2007 being declared as the year of broadband and with a slew of efforts announced by the government to promote development of content in local languages, we are confident that the IT market will gain further momentum in India."
MAIT is keen that the growth in market translates into manufacturing opportunities in India and in this regards the clearance of the Fab policy is indeed very welcome. Further, the industry is eagerly awaiting the policy for IT/electronics manufacturing, which is now long overdue.
The above two policies will play a critical role not only in attracting high-capital intensive manufacturing activities like the semiconductors, LCDs, storage devices but also for spreading the IT consumption in the country.
Reflecting on the hardware-manufacturing scenario in the country and the need for a stable policy regime, Mukul Singhal, president, MAIT said, "In the forthcoming union budget status-quo should be maintained on tax structures for IT products including the continuance of a reduced excise duty of 12 per cent on PCs."
In the last one year, the industry had witnessed significant growth in consumption as well as production. Three new plants have also been set up for PC assembly in the country. Since 2004, the PC industry has witnessed tinkering with the Excise Duty Structure; however, it is only in the last one year an Excise Regime was established that has resulted in a level playing field between the local manufacturing and imports. The same ought to continue.
