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05
June
2012

Rupee 'a bigger tsunami' for Indian IT hardware industry

The Manufacturers' Association of IT (MAIT) in India has asked the Ministry of Finance, Ministry of Commerce & Industry and Ministry of IT & Communications to act in the face of a weaking rupee.
At a press conference today in New Delhi, MAIT stressed the importance of the IT hardware for India.

The current size of Indian IT Hardware industry is estimated to be Rs 70,000 crore.

The association said that Rupee devaluation has had a bigger impact than the Japanese Tsunami and Thailand floods, particularly because of the industries reliance on importants, which stands at 85 percent of content.

"A bigger tsunami has hit Rs 70,000 crore Indian IT Hardware industry in the form of Rupee Devaluation. We are all in red for the last 3 months. Losses are accumulating, causing cash flow challenges and blocking investments," said Alok Bharadwaj, President, MAIT and Senior VP, Canon.

50% of industry's consumption is government-centric. "It is impossible to honour such contracts with 10% devaluation in just 90 days. The Forex volatility is an area of grave concern and we are knocking all doors in the Govt. with a strong request to immediately bail out the Indian IT hardware Industry," he added.

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Source: The Economic Times
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