Engineering Goods Export Stay on Fast Track but Omicron may Play Spoilsport

· Fears EEPC Wants Tax Cuts for LLPs

Engineering goods exports ended 2021 on a positive note despite a host of challenges ranging from high input costs to supply-chain disruptions and exceptionally high freight rates posing downward risks, said EEPC India Chairman Mr Mahesh Desai.

Engineering goods shipments recorded 37% year-on-year growth in the month of December, 2021 with the total value estimated at US$ 9.7 billion.

"While we remain cautiously optimistic the Omicron worry is real and it could play major spoilsport. Our key markets in Europe and North America are witnessing a very high number of infections and that could negatively impact the order pipeline. As of now we have not seen any impact but in the next few weeks we will have a clear picture," said Mr Desai.

He said that while many things could be beyond one's control, certain pre-emptive measures could help the engineering sector to stay on track and continue to make new inroads in markets abroad.

"The government may consider including iron and steel items under RoDTEP and bring the import duty on copper ores to nil in order to calm down prices of primary raw materials," Mr Desai said.

He also called for extending the benefit of lower corporate tax to Limited Liability Partnership (LLPs) and proprietary firms as it will make funds available with a large number of MSMEs for capacity expansion.