| Ceiling
raised on Forex Remittance to $100,000 |
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| The
RBI recently raised the foreign currency limit on
remittance for education, employment abroad, emigration,
medical expenses and maintenance of overseas relatives
to $ 100,000. Also, corporates will be allowed a
remittance of $ 1 m towards consultancy services
sought abroad. |
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Our Say |
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| Increase
in forex inflows and the strengthening
of the Indian rupee may be some
of the reasons behind the RBI's
move to increase the ceiling on
foreign remittance. Certain financial
experts however warn that the
move should be viewed as part
of the RBI's policy to liberalise
current account transactions,
and should not be mistaken as
a decision towards capital account
convertibility. |
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The
RBI also stated that authorized dealers may allow
remittance of up to the prescribed amounts (see
table) purely on the basis of a self declaration,
incorporating the basic details of the transaction
and submission of the application in the prescribed
format. There would be no need of additional support
documents. |
| |
| Remittance
For |
Existing
Limit ($) |
Proposed
Limit ($) |
| Employment
Abroad |
5,000 |
1,00,000 |
| Emigration |
5,000 |
1,00,000 |
Maintenance
of Close Relatives Abroad
|
5,000 |
1,00,000 |
| Education
Abroad |
30,000 |
1,00,000 |
| Consultancy
Fees |
1,00,000 |
10,00,000 |
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| New
opportunities for CAD- CAM vendors as SMEs opt for
sophisticated design tools |
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| CAD-CAM
vendors have recently found a new market in Small
and Medium Enterprises (SMEs) engaged in healthcare,
telecom, IT as well as in the manufacture of watches,
home appliances and jewellery. Previously seen as
a tool for manufacturing giants in the automotive
and defence equipment industry, CAD-CAM is increasingly
being used for designing of several day-to-day products.
There
are several reasons for the increase in use of CAD-CAM
tools by SMEs. Firstly use of these designing tools
has become much more affordable. With hardware prices
falling and software prices becoming more competitive
with the increase in the number of vendors, SMEs
now find it possible to upgrade from 2D CAD to 3D.
The
use of CAD-CAM reduces considerably the development
cycle of products, improving efficiency and reducing
production costs of SMEs in the long run. The importance
of these software tools in paring costs is more
than obvious in the RoI report of designing companies,
where nearly 10% of costs are spent in designing
products.
For
companies who are part of a global supply chain
network, the use of these sophisticated tools helps
products meet international quality standards and
provide them with a technological edge. While automotive
suppliers have always favoured CAD-CAM tools in
the past, these giants are now outsourcing to SMEs
in an attempt to cut costs.
Needless
to say CAD-CAM Vendors are likely to have it good
with SMEs in the time to come..
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