The Engineering Export Promotion Council (EEPC India), the apex body of Indian engineering export organisations, has lauded Finance Minister Arun Jaitley’s Budget. Terming it investment-oriented, particularly in the area of infrastructure, the EEPC has said it would increase the manufacturing capabilities of the country. 

The reduction in corporate tax to 25 per cent would ensure that Indian firms’ tax liability is at a par with the ASEAN economies, while lowering of tax on royalty and technical fee is expected to help technology upgradation.

 

Major emphasis has been placed on skill upgradation and the ease of doing business. The legislative framework being thought about in the grant of clearances would go a long way, EEPC has said in a statement.

Some of the initiatives such as the Mudra Bank for small and medium sized enterprises (SMEs) are well thought-out measures.  However, the increase in service tax from 12 to 14 per cent could be a dampener, noted EEPC India Chairman, Anupam Shah, as services and manufacturing are closely linked. 

``Several manufacturing activities have inputs from the services . The Government’s tax mop-up effort of over Rs 15,000 crore could add to the economic cost,'' he said.

The priority to Digital India and the boost to electronic hardware are the right initiatives towards `Make In India', he added. Postponement of GAAR and the commitment to avoid retrospective tax would boost investment sentiment, he said. 

EEPC has asked the Government to come up with a foreign trade policy soon, as the external sector looks subdued as indicated by the Economic Survey. The Survey has made out a clear case for giving a boost to exports, since the global outlook is rather subdued. 

The country's apex body for the engineering sector has urged the Government to come up with the Foreign Trade Policy and list out priorities and measures for boosting exports, which can give a boost to manufacturing, which is a vital area for creating jobs.

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