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Q.

Many 100% Export Orient Units (EOUs), Electronic Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) came up due to many tax incentives, and other benefits offered by the Government of India to promote exports. In the process the government is losing huge amount by foregoing taxes, duties etc. Do the government action to promote these schemes really justified by many of these units----EOUs, EHTPs, STPs. Your views?

Asked by Good Citizen, 14 Jul '10 09:41 am
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Answers (4)

 
1.

The tax sops to boost exports is not something new in foreign countries also. Shoring up the foreign exchange reserves through exports is one aim of the sheme. The other is the socio-economic agenda of creating more job opportunities to the teemimg millions in the country.The gobal market where the products exported by these companies working in special Economic Zones, is highly competitive, and a quality conscious population in the more advanced economies across the world will not go for a shoddy product imply because that it is few cents or shillings chaper.So a company propped up by the tax holdays offered by the Govt of india can not survive unless it upgrades technology, ensure procurement of quality raw materials etc to churn out quality products to get shelf space in foreign supermarkets. Compnaies failing to get export orders close shops, and have done so in the past too. In this survival game, if a company pulls down its shutters, neither the ill fated company nor the Govt's ...more
Answered by thampy chacko, 14 Jul '10 10:19 am

 
  
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2.

I think it is welcome to spread them evenly ,not concentrate them by heaping up at a particular metros like Bangalore or Chennai or at Hyderabad . Over crowding such techno parks create uncontrolled immigrations and cause strain on the already strained culture and infrastructure . The Government should have some priorities for agriculture to avoid starvation and lopsided growth by creating excess capacity ,by burdening the tax payers.
Answered by venkatesaldevarajan, 14 Jul '10 10:03 am

 
  
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3.

But public of our country is getting empowerment y dont u think that
Answered by Redif User, 14 Jul '10 09:50 am

 
  
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Yes these are necessary to promote local infrastructure and also for creating local employment and if these are/will start exporting sucessfully whatever Govt is leaving today will become double when foreign exchange will come to India.
Answered by sushil trivedi, 14 Jul '10 09:47 am

 
  
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