(MENAFN- KNN India)
Union Budget 2023-24 should focus on capacity building of smaller engineering firms: EEPC New Delhi, Jan 27 (KNN)
In FY22, India exported engineering goods worth USD 111.63 billion, a 45.51 per cent YoY increase, according to the Engineering
Export
Promotion Council of India (EEPC).
Taking about his expectations from the Upcoming Budget, Arun Kumar Garodia, chairman EEPC said“One key aspect this budget should focus on is capacity building of engineering firms, particularly the smaller firms that are facing several challenges, including stiff competition with China.”
“The government should look at the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme as a reimbursement scheme rather than an incentive scheme. It should reimburse whatever taxes have been deducted during the manufacturing of the exported product,' he said
Although the sector is on the right path, but according to the industry stakeholders, they can do much better if they get some protection from the inflationary pressures and volatile global headwinds, according to a report in the economic times.
While schemes such as the Emergency Credit Line Guarantee Scheme (ECLGS) have benefited the industry, these measures technically are a liability to the MSMEs. In such a situation, more tax exemptions or lower taxation can put more money into the hands of the companies to service their liabilities and for technology upgradation, assert industry stakeholders.
The EEPC chairman further suggests that MSMEs could be given direct tax exemption on investments done under the production-linked incentive (PLI) scheme.
“These firms should also be entitled for weighted tax deductions of up to 150 per cent
on costs incurred due to export promotion,” he added.
Centre should also bring down the corporate tax rate from 30 per cent to 15 per cent for LLP and partnership firms registered as MSMEs.
The government should continue the capex push and further increase spending on infrastructure, which is a real necessity for Atmanirbhar Bharat, particularly in the power transmission & distribution (T&D) sector, says Sharan Bansal, Director of Skipper
Limited.“We also want the government to increase the budget allocation towards the RoDTEP scheme to enhance export competitiveness of manufacturers.”
Another product where the MSMEs want some relief is import of glass fibre roving from China, Bahrain and Egypt.
Currently, India is a leading importer of glass fibre roving.The material has a variety of applications due to its high strength and resistance against chemicals.
(KNN Bureau)