As a deemed exporter, tourism and hospitality industry is permitted to enjoy the benefits of Export Promotion Capital Goods (EPCG) scheme of the government, that allows the industry stakeholders to import capital goods required for their business at a concessional custom duty subject to fulfilling export obligations. While the scheme has immensely benefited the hotel industry in its early stages of growth, over a period of time the scheme turned out to be a thorn in the flesh of Indian equipment manufacturers as hotel operators started sidelining the Indian equipments for everything foreign in the guise of international quality and brand standards. In the light of Prime Minister Modi’s big focus on ‘Make in India’, the Indian manufacturers and suppliers demand scrapping of EPCG or extension of EPCG benefits to Indian manufacturers as well so that country can become self reliant and check the foreign exchange drain happening through import.
P Krishna Kumar
tries to understand the pulse of Indian Industry on the issue of EPCG.