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ARTICLE · 11 JANUARY 2022

Dawn Of The EOU Scheme

In 1980-81, the Export Oriented Unit ("EOU") scheme was introduced in India. This scheme was introduced with the objective of inter alia promoting exports from India...

IndiaTax

“The evening sings in a voice of amber, the dawn is surely coming.”

- Al Stewart
(Famous Scottish Singer - Songwriter)

  1. In 1980-81, the Export Oriented Unit ("EOU") scheme was introduced in India. This scheme was introduced with the objective of inter alia promoting exports from India, earning precious foreign exchange for India and attracting foreign investments into India. This scheme necessitated the registering units (EOUs) to export majority of its finished products outside India. Option was also provided to such units to supply certain quantity of its finished products in India [or domestic tariff area (DTA)]. However, on an overall basis, such EOUs were required be positive net foreign exchange (NFE) earner for India.

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