A Good Socio Economic Budget Will Boost Exports In Long Term: FIEO

New Delhi, February 29, 2016: Reacting on the Union Budget 2016-17, FIEO President Mr S C Ralhan welcomed the measures announced by the Government to improve the socio economic scenario of the nation. FIEO Chief observed that some of the measures will have good long term impact on the export sector mainly the announcement to set up 1500 multi skilled training institutes and National Board for Skill Development Certification in partnership with industry. This would address the issue of non availability of skilled manpower for industry. Further, the move to allocate Rs 55,000 crore for Road & highways shall address the last mile connectivity issues and will help in reducing logistics cost of export goods which mostly move by roads in India.

Mr Ralhan pointed out that the other measures like revival of SEZ by extending benefit of Section 10AA to new SEZ Units commencing activity before 31.3.2020, increasing turnover limit under Presumptive Taxation Scheme to Rs 2 crores, lowering Corporate Tax for companies with turnover not exceeding Rs 5 crores, abolishing 13 Cesses and amendment in
Notification relating to Advance Authorizations/DFIA to provide exemption of safeguard duty will provide relief to large segment of exports. Various proposal of FIEO has been partially considered particularly the long pending demand of industry to reduce export duty on Bauxite.

He welcomed measures for ease of doing business like reducing litigation procedures, Customs Single Window Project at major ports & airports, deferred payment of customs duties for importers/ exporters with proven track record, amendment in Companies Act, use of technology and amending provisions regarding higher rate of TDS for non residents in absence of PAN.

However, President FIEO observed that no immediate measures are seen in the budget which can help revive the export downfall except the announcement to widen the scope of duty drawback.