Article Posted on : - Jan 27, 2012

NEW DELHI (PTI): Pointing out that India's aerospace and defence export industry has recorded about 18 per cent growth in the first three quarters of 2011-12, industry body ASSOCHAM on Thursday said the sector is likely to clock USD 2 billion in the current fiscal.

"With about 18 per cent growth during first three quarters of 2011-12, aircraft exports, including components and parts, stood at about 1.31 billion dollars... aerospace and defence exports are likely to clock two billion dollars in current fiscal," ASSOCHAM today said here in a release.

Highlighting India's manufacturing capability in aerospace sector, ASSOCHAM said the parts and components have contributed a whopping 96 per cent of the total aerospace exports.

The export figure for the last fiscal stood at USD 1.11 billion in the corresponding period of previous fiscal, ASSOCHAM noted.

It sought an exemption from input tax and levies for their contractors and sub-contractors by issue of customs and excise duty exemption certificates on the lines of Defence Public Sector Undertakings (DPSUs).

"Issuance of customs and excise duty exemption certificates to DPSUs to claim exemption from input tax and levies is making exports by private sector exporters uncompetitive by about eight per cent," it said.

ASSOCHAM also suggested the government to introduce defence as a priority sector for export promotion council and setting up a Defence Export Award to acknowledge significant exports.