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Computer hardware

Overall impact: Positive

Positive features

• Excise duty remains unchanged on components and finished products at 16 per cent.
• Customs duty reduced from 20 per cent to 15 per cent on: a) computers, b) mother boards and c) floppy diskettes.
• Customs duty reduced from 25 per cent to 5 per cent on: a) parts of floppy diskettes and b) stepper motors for use in computers.
• Reduction in customs duty from 5 per cent to zero on: a) microprocessors b) hard disk drives, b) floppy disk drives, c) CD ROM drives, d) integrated circuits, e) data graphic display tubes for colour monitors, f) deflection components in colour monitors and g) CD ROMs.

As a result of the reduction in customs duties, the prices of computer hardware are expected to decline significantly. This will increase penetration of personal computers in India, particularly in the Small Office Home Office (SOHO) segment. This segment is the fastest growing segment of Internet users.

Unorganised players operating in the grey market (PC assemblers) will lose significant market share to larger players since the price differential between both segments will perceptibly narrow.

Negative features
None

ALSO SEE:

BUDGET IMPACT

The first cut

A matter of life and debt

On the MAT

How will your tax outgo change?

SECTOR IMPACT:

Automobiles | Banking | Cement | Cigarettes | Fertilisers | Housing
Paper | Pharmaceuticals | Software | Telecom | Tyres

PRELUDE TO THE BUDGET

What will Yashwant Sinha do?

How will personal taxes change?

Fiscal report card

PRE-BUDGET SECTOR ANALYSIS:

Automobiles | Cement | Cigarettes | Fertilisers | Hotels | Housing
Mutual funds | Paints | Paper | Petrochemicals | Pharmaceuticals
Power | Software | Steel | Tea and coffee

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