AMD bets on India to sustain growth momentum

As technology companies around the world debate the impact of global economic uncertainties on their businesses, the world's second largest computer chip-maker, AMD, today expressed confidence that countries like India woud drive the growth momentum.

"I think over the last few years, we have got used to a world where there is going to be uncertainty. No one can comment on what will happen in the short-term, but I think over the longer term, [since] digital penetration in countries like India is so low, there is no way to go, but up," AMD India Managing Director Ravi Swaminathan said.

Fears of another financial crisis in major markets such as the US and Europe have raised concerns among technology firms over clients cutting their IT budgets.

"There is no doubt that India has huge potential and what needs to be discussed now is the kind of devices required for the market and at what price points," he said.

India has over 800 million mobile subscribers, but PC penetration in the country remains low.

Increased digital literacy, greater awareness of the Internet medium, lower rentals and low-cost devices and availability of feature-rich cell phones and other devices have helped in growth of PC and computing devices in India. Besides, the Indian government has been taking various initiatives to bridge the digital divide.

Under the e-Governance programme, common service centres have been set up to provide access to government services through broadband.

Given the reach of mobile handsets, the government is also looking at taking the Internet to people through these devices. It is estimated that over 25 million people in the country access the Internet through their mobile devices.