India's special economic zones, believed to be the instrumental in forwarding India's success story to next level, are currently feeling the heat of global economic slowdown. To help them overcome the problems posed by changed economic environment, government is looking to give certain relaxations, primarily to those engaged in textile and gems and jewelery business.
Government may ease the restriction relating to foreign exchange earning which states that total foreign exchange spent by these units should be less than foreign exchange earnings, for 6-2 months. It may further allow such SEZs to sell part of their output in domestic market without paying customs duty.
These measures are being contemplated in wake of sharp decline in consumer spending in US and European Union, two largest trading partners of India. Government feels that by giving certain relaxations to these export oriented entities will help maintain employment in these industrial as well help halt the declining trend in exports.
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