KOLKATA: EEPC India has asked Ernst & Young to formulate a strategy paper for growth in the engineering sector, particularly in light of opportunities emerging in the civil nuclear and defence sectors. The report is expected early September.
The strategic action plan will be prepared by EEPC India on the basis of recommendations of the global professional services firm, said the council’s vice chairman Anupam Shah.
With engineering exports taking a beating due to the global economic slowdown, export margins have shrunk significantly, if not ending up in loss sometimes. In this situation, it will being relief to exporters if they quickly get back refunds on services tax and other local taxes from the Centre and state governments, paid on production for exports, said Mr Shah.
He was speaking at the 25th award presentation ceremony for engineering goods export performance in the eastern region for 2006-07, held on Wednesday. The year’s toppers, selected in that category, include National Aluminium Co (Nalco), Balasore Alloys, Gayson & Co, Mangal Steel and Excelo Industries.
On the issue on the tax refund, Mr Shah said exporters are facing liquidity crunch for not getting the refund on those taxes in due time. Added to this, it will be another blow if exporters do not get the refund on service tax, relating to exports, for the quarter July-September 2007, he said.
The row over refund on the tax for that period emanates from conflicting stands taken by the commerce ministry and the finance ministry.
Despite the global meltdown, Indian engineering goods, aided by quality and competitiveness, showed some resilience in the world market. That’s why despite facing shrinking export orders from the US and Europe, India’s engineering goods exports grew about 13.45% to $38.26 billion in 2008-09 from $33.72 billion in 2007-08.
Source : The Economic Times