Export Oriented Unit Status for Small Scale Industries

Small scale industries play a crucial role in the economic development of a country. They help in generating employment opportunities, promoting entrepreneurship, and contributing to the overall GDP. To encourage and support these industries, the government provides various benefits and incentives, including the status of an Export Oriented Unit (EOU).

Definition of Export Oriented Unit

An Export Oriented Unit is a status granted by the government to businesses that export more than 50% of their production. This status provides various benefits and incentives to the business, such as exemption from import and excise duties, exemption from taxes, and access to foreign investment.

Benefits of Export Oriented Unit Status for Small Scale Industries

Small scale industries can enjoy the benefits of an EOU status by exporting more than 50% of their production. Some of the benefits of this status include:

1. Tax and Duty Exemptions: EOUs are exempted from import and excise duties, as well as various taxes.

2. Access to Foreign Investment: EOUs can attract foreign investment, which can help in expanding their production capacity and increasing exports.

3. Infrastructure Support: EOUs are provided with various infrastructure facilities, such as dedicated export processing zones, which help in reducing the cost of production.

4. Marketing Assistance: EOUs are provided with marketing assistance, including support for participation in international trade fairs and exhibitions.

Conclusion

In conclusion, the status of an Export Oriented Unit is a significant benefit for small scale industries, as it helps in promoting exports, generating employment, and contributing to the overall economic growth of the country. The government provides various incentives and benefits to EOUs, which can be advantageous for small scale industries in expanding their production capacity and increasing exports.