Faced with a sharp decline in shipments due to a global demand slowdown, engineering exporters have decided to approach the Prime Minister's Council on Trade and Industry for reintroduction of tax exemption on export income to boost competitiveness of Indian shipments in global markets.
The Engineering Export Promotional Council (EEPC’s) chairman Aman Chadha has urged these exemptions to be considered seriously, if the government wishes Indian engineering exports to compete against Chinese manufacturers in the world market.
The council feels that it would be difficult for the Indian engineering export sector to meet the export target of over $ 61 billion in the current fiscal, with the US and European markets not recovering to the desired level. Engineering exports shrink by 7.53% in the Q1FY14 despite currency depreciation as the advantage was offset by the rising cost of production due to currency volatility.
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