Export Oriented Units (EOUs)

Definition: Export Oriented Units (EOUs) are industrial units that are set up in designated areas in India with the objective of promoting exports and earning foreign exchange for the country. These units are exempted from certain taxes and regulations to encourage export activities.

Essential Operating Units:

Essential Operating Units is not a commonly used term in the business or commerce field. It does not have a specific definition or meaning related to this context.

Export Order Units:

Export Order Units is also not a commonly used term in the business or commerce field. It does not have a specific definition or meaning related to this context.

Essential Order Units:

Essential Order Units is not a commonly used term in the business or commerce field. It does not have a specific definition or meaning related to this context.

Explanation:

The correct answer is option 'B', Export Oriented Units (EOUs). EOUs are established in India with the purpose of promoting exports and earning foreign exchange. These units enjoy various incentives and benefits to encourage export activities. Some of the key features of EOUs are:

1. Location: EOUs are set up in designated areas known as Export Processing Zones (EPZs), Special Economic Zones (SEZs), or Software Technology Parks (STPs). These zones provide infrastructure facilities and a favorable business environment for export-oriented industries.

2. Tax Benefits: EOUs are exempted from various taxes and duties such as customs duty, central excise duty, and service tax. This helps in reducing the cost of production and making the products competitive in the international market.

3. Simplified Procedures: EOUs are allowed to import and export goods without going through the regular customs clearance procedures. They are also given relaxation in obtaining licenses and permits, making it easier to carry out export activities.

4. Income Tax Benefits: EOUs are eligible for income tax benefits such as exemption from income tax for a certain period of time or tax concessions on export profits.

5. Foreign Investment: EOUs can attract foreign direct investment (FDI) as they offer a favorable investment climate and opportunities for international business collaboration.

6. Employment Generation: EOUs contribute to employment generation by creating job opportunities in the export sector. This helps in reducing unemployment and improving the standard of living.

In conclusion, Export Oriented Units (EOUs) are industrial units established in designated areas in India to promote exports and earn foreign exchange. These units enjoy various incentives and benefits to encourage export activities and contribute to the economic growth of the country.