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Political scenario handicaps IT trade in AP

If the customer walk-ins are a challenge for retailers, payments from the government sector are for the system integrators

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The IT trade in Andhra Pradesh has not found any development in the recent days due to the ongoing political scenario. A lot of payments are still pending in the state-government related projects. Both retailers and systems integrators are tasting bitter fruits out of these on-going agitations. If the customer walkins are a challenge for retailers, payments from the government sector are for the system integrators. However, this week, there has been an improvement in the state as the situation seems to turn normal. Schools are opened and shops are also gradually getting busier. "Agitations are losing its wrath, and the situation is gradually improving. However, we cannot predict anything until a final solution is made. As the commercial taxes department is not working and the treasury is closed, we cannot get back our payments," said KVR Menon, president, Twin Cities Computer Dealers' Association (TCCDA). "IT being one of the major aspects of any business, there will be a boomerang effect on us," he further added. Apart from that, he also added that since the commercial taxes department is working limitedly, even after the government returns to routine, payments related to IT industry will get least priority.

"There is no development in the IT trade since all the other industries are affected, IT being the key facet for every business, we are also affected. No one is in the mood to implement new projects and even the orders to be implemented get postponed," said Sailesh Gumidelli, a Secundrabad based partner. Since the commercial taxes department is not working in a full-fledged manner, there is a drop in the sales in the upcountry region also. If the sources from Chenoy Trade Center, the IT hub in the city are to be believed, since the government did not provide any bonus to employees for Dussehra, it is likely to be released for Diwali which may help the retailers to find more opportunities. Whatsoever, even though the channel community is getting ready for Diwali festival with full zeal, they are equally unhappy with the scenario and all they need is a good decision to be made at the earliest.

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