The government of India’s policies on the computer saling by foreign companies is working against the India’s dream to attract the foreign investment in India. Dell Inc Chief Executive Officer Michael Dell said that India is losing the race to woo global investors in computers in the hand ofChina’s mainland, Taiwan and Vietnam. Earlier, India has reportedly refused to reduce the existing import taxes and sales taxes on PC sales.

Dell has said in New Delhi that the company is going to spend about $19 billion with its suppliers in China’s mainland and Taiwan and India is receiving approximately zero amount because of its high tariffs.

Dell said further that because of high import duties and other related tariffs, the sale of personal computer in India was curbed to six million units in 2006. The company had sold 25 million PCs in China’s mainland last year.

Now, the Dell Company has decided to establish a manufacturing unit in India in July to minimize the impact of taxes. India has a great scope for growing sale of PCs because still less than two percent people own a PC in India.

According to Dell statement, company’s 86 suppliers have signed a petition and urged the government of India to reduce India’s import duties from existing rates to zero. Because of the taxes, the rate of PC grows up to the 25 percent of the original cost of a PC.

Another Taiwanese components-supplier decided to invest 5 billion dollars in Vietnam over the next 10 years. Dell said that the major investment could have come to India.

Further, Dell has planned to increase the employees’ base in India to almost 20,000 in next two years. The report says that Dell’s most comprehensive presence in the world outside the US will be here in India.

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