EEPC India seeks Rs 500 cr for tech upgradation for SMEs
Updated: Oct 01, 2013 04:10:50pm
Kolkata, Oct 1 (KNN) EEPC India today sought from the government a Rs 500 crore Technology Upgradation Fund (TUF) to help Indian exporters, particularly in the small scale sector, compete in the international market.
Addressing a press conference here, new EEPC India Chairman Anupam Shah said with recovery in the developed world, it was time for Indian MSME engineering sector to invest in technology and move up the value chain.
This was the most important lesson the recent downturn in global economy had taught the engineering sector. “We must do two things, he said: first invest in technology to ensure that our medium and high value added exports as a percentage of our total exports reach 75 per cent from the present level of 55 per cent in the next five year,” he said.
Shah said he has doubts whether the Ministry of Finance is committed to helping engineering exports and reducing Current Account Deficit (CAD), as is seen by “discriminatory” treatment meted out to exporters of the key engineering sector.
He stated that without a substantial increase in engineering exports, there is no way the country’s CAD can be reduced.
While the employment-oriented engineering sector used to be the largest contributor to the total exports basket accounting for 20 per cent till recently, petroleum exports have replaced the engineering sector at the top.
Giving unfair treatment to the engineering exports, the Finance Ministry has cut back the duty drawback rates for over 3500 products ranging between 25-40 per cent while these rates should have actually been increased by at least 30 per cent, Shah said.
The value addition norm used for computing the drawback rates has been raised from 33 per cent to more than 250 per cent in the most alarming way, he said.
Thus, the advantage accruing to engineering exporters by rupee depreciation and benefits vis-à-vis Chinese Yuan has been taken away, the EEPC India chief said wondering why the sector was being singled out. This impression gets created since the garment exports rates have been substantially revised upwards.
This was being done when the cumulative engineering exports figure for April-August remains negative (-) 4.19 per cent, even though export has turned positive by 2.27 per cent only in August.
This duty drawback rate cut is uncalled for and the nearly 13,000 members of the Council vehemently protest this UNFAIR treatment that is being meted out to the engineering sector. The Council is receiving complaints regularly from its members, be it from the large scale, medium scale or small-scale sector, about the sharp reduction in Duty Drawback rates.
“There seem to be non-economic factors behind this irrational decision of the Revenue Department,” he said. (KNN/PC)
Addressing a press conference here, new EEPC India Chairman Anupam Shah said with recovery in the developed world, it was time for Indian MSME engineering sector to invest in technology and move up the value chain.
This was the most important lesson the recent downturn in global economy had taught the engineering sector. “We must do two things, he said: first invest in technology to ensure that our medium and high value added exports as a percentage of our total exports reach 75 per cent from the present level of 55 per cent in the next five year,” he said.
Shah said he has doubts whether the Ministry of Finance is committed to helping engineering exports and reducing Current Account Deficit (CAD), as is seen by “discriminatory” treatment meted out to exporters of the key engineering sector.
He stated that without a substantial increase in engineering exports, there is no way the country’s CAD can be reduced.
While the employment-oriented engineering sector used to be the largest contributor to the total exports basket accounting for 20 per cent till recently, petroleum exports have replaced the engineering sector at the top.
Giving unfair treatment to the engineering exports, the Finance Ministry has cut back the duty drawback rates for over 3500 products ranging between 25-40 per cent while these rates should have actually been increased by at least 30 per cent, Shah said.
The value addition norm used for computing the drawback rates has been raised from 33 per cent to more than 250 per cent in the most alarming way, he said.
Thus, the advantage accruing to engineering exporters by rupee depreciation and benefits vis-à-vis Chinese Yuan has been taken away, the EEPC India chief said wondering why the sector was being singled out. This impression gets created since the garment exports rates have been substantially revised upwards.
This was being done when the cumulative engineering exports figure for April-August remains negative (-) 4.19 per cent, even though export has turned positive by 2.27 per cent only in August.
This duty drawback rate cut is uncalled for and the nearly 13,000 members of the Council vehemently protest this UNFAIR treatment that is being meted out to the engineering sector. The Council is receiving complaints regularly from its members, be it from the large scale, medium scale or small-scale sector, about the sharp reduction in Duty Drawback rates.
“There seem to be non-economic factors behind this irrational decision of the Revenue Department,” he said. (KNN/PC)
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