Policy Info > Views of EEPC INDIA : Union Budget 2016-17
Exporters happy with broad Budget thrust, though wanted specific steps for relief
The Union Budget Proposal for 2016-17 was presented in the Parliament today by the Hon'ble Finance Minister Shri Arun Jaitley. Welcoming the broad thrust of the Budget which realises the headwinds faced by Indian exporters in the global markets, EEPC India Chairman Mr. T S Bhasin today said emphasis on rail and road by increased investment along with better port connectivity should help the foreign trade in the long run.
Ease of doing business for the SMEs as also in the procedures for Advance Licence and Duty Free Import Authorization Schemes retrospectively should help the engineering manufacturer exporters importing steel. Mr. Bhasin said changes in customs rates on certain inputs to reduce costs and improve competitiveness of industry in sectors like Information technology hardware, capital goods, defence production, textiles, mineral fuels & mineral oils, chemicals & petrochemicals, paper, paperboard & newsprint, Maintenance repair and overhauling [MRO] of aircrafts and ship repair are positive for the exporters.
The EEPC India also welcomed the proposed changes in the Customs Act to provide for deferred payment of customs duties for importers and exporters with proven track record. Customs Single Window Project to be implemented at major ports and airports starting from beginning of next financial year. This should also help the foreign trade.
However, Mr. Bhasin said while no big relief measures are found in the Budget for the distressed export sector and the Finance Minister is betting high on the domestic demand and consumption, the exporters need priorities of the government for the crucial need of foreign exchange for the country and the employment potential in a number of sectors like engineering. New cess would send the manufacturing cost soaring, he said, adding the Revenue department should work closely with the Commerce Ministry along with the Reserve Bank of India to unveil some specific packages for the exporters.
The summary of the Union Budget Proposal is linked below for your ready reference.
Summary of Union Budget 2016-17