From the Desk of Chairman

Aqeel_Ahmed

Chairman Column

Export Performance

When the export performance data for the whole year 2018-19  is published, I hope that we will be able to achieve a growth of more than 8% in Rupee Terms and also a positive growth in Dollar Terms. Some product segments are showing decline but I am sure that these segments will also show positive growth in the coming months.

We will undertake all possible efforts and initiatives for overall growth of the footwear and leather industry in order to achieve at least 9% to 10% growth in the coming years.

Global Economy Forecasts

The recent global economy forecasts of International Monetary Fund (IMF) released at World Economic Forum in Davos has projected 7.5% and 7.7% growth for Indian economy as against 3.5% and 3.6% growth of global economy in 2019 and 2020 respectively, which shows the positive outlook for the economy in general. In line with this positive forecast, the Indian leather and footwear industry will also grow both on export front and in the domestic market.

Revisions in All Industry Rates of Duty Drawback

You are aware that in the revisions of drawback rates notified recently which came into affect from Feb. 20, 2019, the drawback cap value for Leather Shoes for Adults namely boots and half-boots falling under 640301 has been increased from Rs. 39.2 per pair to Rs.78.80 per pair. The DBK rate for leather sofa cover and upholstery leather has also been increased from 1.2% to 2.5%, with cap of Rs.4.5 per sq.ft.  I would urge members to provide comprehensive and verifiable cost data of their products during the drawback revision exercise next financial year. A circular in this regard will be issued by CLE, once we get information on the revision exercise from the Drawback Directorate.

Domestic footwear sector

A recent study by a consulting group on Indian footwear market has also come-up with interesting facts.

  1. The Indian footwear market will grow at compounded annual growth rate of 14.5%.
  2. Footwear will be the fastest growing category among lifestyle products.
  3. Branded footwear, which currently has a share of 44.5% will have 50% share by 2021, growing at CAGR of 19% as against CAGR or 11% for unbranded footwear.
  4. Organised retail and online retail are expected to grow by CAGR of 18% and 27% respectively.

The growth of domestic footwear industry will help in generating more production and more employment opportunities.

 

With best wishes

 

P.R. Aqeel Ahmed
Chairman
COUNCIL FOR LEATHER EXPORTS