Handtool export down 50% in Jan, stimulus not enough: EEPC

Claiming that the two packages announced by the union government have failed to boost the export of hand tool, the Engineering Export Promotion Council (EEPC) for the sector today said that in the first month of 2008, shipments have decline by 50 per cent.

Although the attempts made by the government in the packages announced was very good to boost exports, yet it did not yield desired results due to severe global economic meltdown, especially in the US and European countries, prime buyers of hand tools, EEPC (handtool) Sharad Aggarwal told PTI.

Aggarwal said in the next stimulus package exporters should be exempted from Income Tax at least for next five years under 80HHC, if the Centre was seriously concerned about the plight of exporters.

Apart from exemption from Income Tax, rate of interest should not be more than seven to eight per cent for the purpose of diversification and modernisation of the industry to enable it to compete at global level, he said adding, that pre-shipment credit in foreign currency be provided at the rate of interest available at London Inter Bank Offered Rate.