^^ Does that mean our customs are unnaturally high [a legacy of the License Raj]? OR The INR is really weak internationally?
ALPHA17, The Indian customs duty for computer peripherals (not applicable for printers and the like) is 14.71 percent. But I also got to know from one of the distributors that, most of the time they don't pay this figure. Something like 5 percent is paid under the table and the shipment is processed.
Also if we look, almost all the computer parts manufacturing companies are in Taiwan, a few are headquartered in Hong Kong and very few companies like EVGA, XFX, BFG etc are from other countries. These brands do not have any presence here except XFX, which nobody buys, because of bad ASS. So when the Indian channel partners import these parts, the transaction happens either in INR or Taiwan Dollars (think about it, the whole Taiwanese economy is held together by chip manufacturer TSMC and all these other computer manufacturers. Computer industry is almost the backbone of that country). Isn't this proof enough that the US dollar fluctuation has absolutely nothing to do with the price inflation here? Its nothing but pure greed, that is dictating the hardware prices here. And as
mav2000 suggested earlier, customs duties are present everywhere, even in the US (maybe a little less) so that should not be considered when converting.
One more thing, there is something called as the "Suggested international retail price", almost always shown in USD or EURO by the manufacturer. This includes the shipping cost, the distributors margin, the retailers margin and to a large extent the customs duties. Literally, the only extra taxes are the 5 percent vat, applicable octroi and other smaller taxes like CST.