Engineering exports to touch 50 billion dollars by 2016

New Delhi, Jan 28 (UNI) With the country's engineering products exports poised to clock a robust 50 billion dollars by 2016, the Engineering Export Promotion Council (EEPC) has said the tax regime is a setback on its way to growth.

''In order to facilitate export in the country, the Commerce and the Finance Ministry should work as a team to clarify the structure and provision of taxation,'' Engineering Export Promotion Council Chairman Rakesh Shah told UNI.

Referring to the reiteration of the government on the need to implement a unified goods and service tax (GST) regime from April 1, 2010, he said that GST will bring some relief from the complicated tax regime.

Meanwhile, Mr Shah said the improved quality of export products, and quality manpower will drive the engineering products export rate, which will touch 24-billion-dollar mark in the current year.The sector has the potential to grow at 40 per cent per annum in the next five years.

Though government has taken certain initiatives for the promotion of small and medum entreprises (SMEs), more focus is required in the sector. The sector contributes about 40 per cent to the engineering exports.

To promote trade between different countries of the world, EEPC had organised a three-day India engineering meet and exhibition on January 22-24, 2007.

About 150 Indian companies had participated in the event and over 300 foreign buyers attended it from Africa, US, Canada, Europe, Latin America, ASEAN, Australia and New Zealand.

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