Industry & Economy
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Exports & Imports
Deadly blow, say 100% export-oriented units
Our Bureau
New Delhi, March 4 The recently announced Union Budget for 2008-09 has struck a deadly blow to the 100% EoU sector. Despite numerous representations from the trade as well as from the Ministry of Commerce, the Finance Minister has failed to appreciate the stellar role played by this sector in export growth, development of backward area, job creation and various other benefits that this sector has provided to Indian economy, a statement issued by the Confederation of Export-oriented Units (CEU) here said.
The 100 per cent EoU sector had high hopes on this Budget for its survival. The retention of sunset clause of Section 10-B of Income-Tax, additional customs duty on DTA sale, neutralisation of additional tax burden due to service tax, FBT would all lead to mass de-bonding of 100 per cent EoU. This is likely to have a negative effect on the growth of backward areas and manufacturing sector in particular, it said.
Mr S.K. Saraf, President, Confederation of Export Units, has appealed to the Finance Minister to have a close look at the performance of this sector and to decide whether the Indian economy still needs this sector or deserves a decent exit.
While all the exporters are deeply disappointed, the 100 per cent EoU sector is particularly hit hard, since even the export relief package was not made applicable to 100 per cent EoUs, he added.
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