Mumbai, Feb 1 (PTI) Welcoming the thrust on exports, the national engineering exporters body EEPC as said the Budget proposals will help cut transaction cost for exporters.
The Budget initiatives to improve basic infrastructure like the Railways and roads along with a focus on local manufacturing, will reduce transaction costs for exporters, EEPC India chairman Ravi Sehgal said.
The budget as set a target of 15 per cent growth in outward shipments next year.
"The overall direction of the budget is pro-industry, especially the MSMEs along with emphasis on the rural landscape. The finance minister should be complimented for showing courage to include most sectors in a scheme that involves hiring employees with the fixed contractual tenure," Sehgal said.
The other pro-exporters measures include upgrading investment on basic infrastructure like the Railways and roads, ports and airports, he added.
He also welcomed the proposal to have a dedicated portal for enabling seamless government-exporters interface. However, he questioned that rationale behind the 20 per cent export duty on graphite electrodes.
"While the overall emphasis is on protecting the domestic industry, it is not clear why 20 per cent export duty has been levied on graphite electrode? This is contrary to the stated government policy to give an impetus to exports.
`"The emphasis should have been on removing the inverted duty structure on the imports and have more duty on finished products while raw material should be subjected to the lowest duty structure," he said.
He also the lower 25 per cent corporation tax on companies with under Rs 250 crore annual revenue would help small units and revive their confidence. PTI BEN BEN
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