EOU notes
EOU Meaning, Objectives and Eligibility
An EOU is an approved unit that undertakes to export its production of goods or services, apart from permissible domestic sales.
Objectives of the scheme
- Promote exports and earn foreign exchange.
- Attract investment, including foreign investment, into export production.
- Allow duty-free procurement of inputs for export production, subject to conditions.
- Generate employment and technology linkages.
Who can set up an EOU?
Manufacturing and services units, including software, can be approved, as can specified activities such as agriculture, aquaculture, floriculture and similar primary-sector activity. Pure trading units are not covered. Approval is not automatic; the unit must meet eligibility, investment and compliance conditions in the policy and Handbook of Procedures.
The Chapter 6 family of schemes
| Abbreviation | Scheme |
|---|---|
| EOU | Export Oriented Unit |
| EHTP | Electronic Hardware Technology Park |
| STP | Software Technology Park |
| BTP | Bio-Technology Park |
Study Library and practice
- Study Library: trade deficit and the external sector
- SEZ explainer: Act 2005, DTA and customs
- EOU vs SEZ quick explainer
- Take the EOU practice quiz
- Daily current-affairs quiz
Official references
FAQs
Can a trading company become an EOU?
No. Pure trading units are expressly excluded from the Chapter 6 schemes.
Which policy governs EOUs?
Chapter 6 of the Foreign Trade Policy 2023, with procedures in the Handbook of Procedures.