What is the minimum percentage of export value required for an industr

What is the minimum percentage of export value required for an industrial unit to be eligible for the ‘Export Oriented Unit’ status in India?

25%

33%

50%

75%

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC Combined Section Officer – 2019-20

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Export Oriented Units (EOUs) in India undertake to export their entire production (100%), but they are allowed to sell a certain portion in the Domestic Tariff Area (DTA). The maximum permissible DTA sale for EOUs is generally limited to 50% of the FOB value of exports achieved during the year, subject to the unit achieving positive Net Foreign Exchange (NFE). While the eligibility is based on the undertaking to export 100%, the operational framework involving a 50% DTA sales limit relative to exports makes 50% a key percentage associated with EOU operations, implying a strong export focus. Given the options and common references, 50% is the most plausible answer linked to EOU policy percentages, likely referring indirectly to the DTA limit that mandates significant exports.

EOUs are designed for maximum export, with limited permissible domestic sales.

EOUs enjoy certain benefits and are required to meet performance criteria, including achieving positive Net Foreign Exchange earnings over a specified block period.

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