India : Exporters face disappointment with budget proposals - GEA

Reacting sharply to the Budget proposals, Garments Exporters Association (GEA) has pointed out that the exporting community feels being left in the lurch as there is hardly anything new in the Budget proposals that will lift the sagging morale of our exporting community which is facing serious crisis because of global slow down and sharp and persistent appreciation in the value of rupee, seriously eroding the competitiveness and profit margin of Exporters.

The Finance Minister, conveniently ignoring the legitimate expectations and needs of the Garment Exporters, has also failed to restore 100% exemption to export earnings under Section 80 HHC of Income Tax Act. He has also failed provide the necessary exemption from Service Tax, Fringe Benefit Tax and other Central and State Levies.

Further Garments Exporters Association said that budget proposals are thus a let down for the garment exporters who were hoping for a dream budget from the Finance Minister, in view of various recommendations of Ministry of Commerce and Industry, Ministry of Textiles and even the Prime Minister’s Economic Advisory Council to provide necessary fiscal and commercial relief to the Textile Industry to help them to overcome the present crisis.