BMI View: Our strong economic growth forecast for India foresees rapidly rising household incomes,posing expansion opportunities for low-cost devices and solutions. Impediments to growth includedemonetisation and the introduction of a new Goods and Services Tax (GST), with less-essential tablets hithard in 2017. Servers and spending on cloud computing services and infrastructure will keep the marketbuoyant, to a degree. We forecast IT spending CAGR of 7.2% over 2017-2021 to almost INR2.92trn.
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Computer Hardware: INR953.8bn in 2017 to INR1.1trn in 2021, corresponding to a compound annualgrowth rate (CAGR) of 3.3%. Although rising incomes and low-cost solutions arising from the 'Make InIndia' initiative are positive for the market, sharp falls in sales of PCs (with both notebooks and tabletsusurped by smartphones) and printers, as well as other networking equipment were seen in 2016 andmuted demand will be seen over the next three to four years.