From the Desk of Chairman

Aqeel_Ahmed

Chairman Column

Export Performance

Export of leather, leather products and footwear from the country have increased from Rs.37003.41 crore in 2017-18  to Rs.39, 793.04 crore in 2018-19, registering a growth of 7.54% in Rupee Terms. However, in Dollar Terms the exports have showed a slight decline from USD 5740.98 million in 2017 – 18 to USD 5690.99 million in 2018-19, registering decline of 0.87%. In dollar terms, finished leather, leather garments and footwear components have shown decline. The decline in export performance of these product segments can be attributed to many reasons including reduction in global imports, competition from synthetic items etc., Nevertheless, CLE will continue to undertake aggressive efforts for promotion of exports of all product segments and achieve the envisaged 9% to 10% growth in exports during the current year.

Market Development Activities

During 2018-19, exports to the major market of USA has increased by 5.47% in dollar terms, which is a very good sign. Imposition of additional 15% import duty in USA ( in addition to 10% already being implemented) for China for various goods including leather goods, leather garments, saddlery and harness items, gloves etc. will create more opportunities for India.

Besides USA, exports to many markets like Australia, Portugal, UAE, Chile etc., have shown positive growth. Further, large markets like Japan and Russia also offer very good potential for growth.

Accordingly, CLE is undertaking aggressive market development activities in many countries including participation in fairs, BSMs etc., The details of upcoming CLE events are given in this edition, which members may kindly refer.

IDLS Scheme – Request for submission of applications

Through this Desk, I would like to update the members on the most important IDLS Scheme.  Subsequent to CLE ‘s widespread and nationwide dissemination of the guidelines and procedures of IDLS scheme, I am glad to note that the industry has submitted a total of 224 applications in the online portal as of 15.05.2019 involving total project investment of Rs.438.19 Crores. As members are aware, the IDLS Scheme is coming to an end by March 2020 and we are left with only 9 months time. It is necessary and safer option for the industry to submit their applications by July 2019 and in any case not later than September 2019. This will enable the PIUs to appraise the applications and submit to DPIIT, approval process in DPIIT and fund disbursement can all be completed by December 2019 itself. In order to sensitize this, the CLE has organizing a nationwide Awareness Campaign & Workshops on IDLS Scheme at all the leather clusters, with the participation of FDDI and CLRI.

I would call upon the industry members to bestow their atmost attention to this crucial matter. This would help avoiding unfortunate incidence of previous XII plan period wherein applications submitted by the industry could not be approved by the Steering Committee before the end of March 2017 and subsequently all these applications were returned back to the applicants. You may reach out to CLE offices for any clarifications and guidance you may require in preparing and submitting your applications in the online portal.

 

With best wishes

P.R.  Aqeel Ahmed
Chairman
COUNCIL FOR LEATHER EXPORTS