Kolkata, Engineering Export Promotion Council (EEPC India) has urged the government to revive the interest subvention scheme for exporters in its pre-budget recommendations.
Arun Kumar Garodiya, President, EEPC India, stressed the importance of the scheme especially with rising interest rates.
He called for restoration of three per cent discount rate for specific tariff lines and 5 per cent rate for MSME exporters in all product categories.
Recently, concern has increased due to the exclusion of merchant exporters from the Interest Equalization Scheme (IES). EEPC India argued that credit costs significantly impact merchant exporters with low profit margins. He proposed to give them IES benefits with a discount rate of three percent.
A government notice extended IES by two months, but only for MSMEs. Due to this, traders and big exporters remained ineligible after June 30.
The top engineering export promotion body warned that the boycott could hurt these businesses, especially in competitive sectors.
The recommendations include restoring 150 per cent weighted deduction for R&D expenses, offering 100 per cent depreciation for MSME investments in solar power generation and implementing a 25 per cent income tax slab for MSME manufacturing units with reinvestment conditions.
EEPC India said it represents around 9,500 member companies (over 60 per cent MSME), and the industry is a major contributor, accounting for 25 per cent of total exports and the highest foreign exchange earner.
Arun Kumar Garodiya, President, EEPC India, stressed the importance of the scheme especially with rising interest rates.
He called for restoration of three per cent discount rate for specific tariff lines and 5 per cent rate for MSME exporters in all product categories.
Recently, concern has increased due to the exclusion of merchant exporters from the Interest Equalization Scheme (IES). EEPC India argued that credit costs significantly impact merchant exporters with low profit margins. He proposed to give them IES benefits with a discount rate of three percent.
A government notice extended IES by two months, but only for MSMEs. Due to this, traders and big exporters remained ineligible after June 30.
The top engineering export promotion body warned that the boycott could hurt these businesses, especially in competitive sectors.
The recommendations include restoring 150 per cent weighted deduction for R&D expenses, offering 100 per cent depreciation for MSME investments in solar power generation and implementing a 25 per cent income tax slab for MSME manufacturing units with reinvestment conditions.
EEPC India said it represents around 9,500 member companies (over 60 per cent MSME), and the industry is a major contributor, accounting for 25 per cent of total exports and the highest foreign exchange earner.
