Amid various reports on encouraging infotech penetration in India, global consultant Arthur Andersen has identified the low personal computer and Internet base in the country as major hurdles for healthy e-commerce growth. The penetration of personal computers in India is quite low at 3.6 computers per thousand people, as against 362 per thousand people in the US, Andersen said in its recent report analysing e-business opportunities.
The report which comes as a reiteration of the long-standing demand by various industry associations to increase the bandwidth capacity, further points out that the current telecom infrastructure does not support high bandwidth access, thereby reducing the speed of access, and proving to be a major hurdle in e-business growth. The report, however, lauds the recent government initiatives including the new information technology (IT) act 2000, which provides a legal recognition to digital signatures and electronic contracts.
Underlining other incentives which have galvanised the nascent e-business industry, it said that the ministry of finance has set up a high-powered committee to deliberate and discuss the required amendments in tax legislation, since the current tax laws do not envisage an e-business situation.
Bureau Report