The Hindu Business Line : `India must become IT hardware hub'

THE zero duty regime from next year must not deter India from pursuing its objective to become a IT hardware manufacturing hub, according to speakers at a seminar organised by the Manufacturers Association for IT Industry (MAIT) here.

Citing the example of automobile industry, which bucked the stiff duty and taxation regime to emerge with strong export performance, Mr Gopal Srinivasan, Director, TVS Electronics Ltd, said the unprecedented rate of technological progress would support the optimism for India's strength in manufacturing hardware.

However, other speakers including Mr Vivek Mishra, Partner, Ernst &Young, Mr Stephen Mathias, Partner, Kochar & Co, Mr Seetharam, Country Executive, Government Programmes, IBM India, and Mr M.V. Appa Rao, Managing Director, Solectron, Centum, felt that though auto sector could provide the benchmark for quality and process, IT is a different proposition requiring different set of approaches.

Mr Mishra said with five-fold increase in IT industry since 1996 and easier access to international capital now, hardware manufacturing is a reality.

Mr Appa Rao felt the rapid strides by wireless technology, particularly the telecom sector, alone could sustain a manufacturing base. However, IT sector must address the issues of speed in delivery to beat the obsolescence and strong logistics support.

"Opportuinities are real, but issues like Centre-State taxation, pushing e-governance and computerisation in Government have to be addressed".