Chairman Column

We thank the Government of India for concluding eight major trade agreements since 2021, including India–UAE (CEPA), India–Australia (ECTA), India–UK (CETA), India–Mauritius (CECPA), India–EFTA (TEPA) covering Switzerland, Norway, Iceland and Liechtenstein, India–Oman (CEPA) and FTAs with EU and New Zealand.

The FTAs will provide duty free benefits for leather, leather products and footwear while trade deal with USA will significantly enhance our competitive advantage. These will help in achieving overall export target of USD 14 billion by 2029-30 and in generating additional employment for 2.2 million people.

As 98% of our sector is in MSME, this will increase the price competitiveness of MSMEs. As India has provided duty free facility for import of leathers under the FTAs, these agreements will also reduce the cost of import of raw materials.

However, we need certain additional support measures from the Government for meeting the overall turnover target of USD 50 billion, which includes domestic turnover of USD 36 billion and export turnover of USD 14 billion, as mentioned above.

We thank the Government for announcing the Focus Product scheme for footwear and leather sector in Union Budget 2025-26. We would request that this scheme be implemented for the entire footwear and leather sector including footwear, leather goods, leather garments, saddlery and harness, leather and also all critical components and raw materials. We would also request that the scheme should be implemented without any minimum turnover threshold condition and the incentive should be provided on the basis of investment made.  The scheme should also be extended to machinery segment and all major inputs and raw materials. Consideration of these requests are vital to establish a comprehensive production eco system in the country.

We have also taken-up the request for providing general Import duty exemption for bovine crust and finished leathers, with the Government. This will reduce the cost of import of these essential raw materials and will help in enhancing price competitiveness.

The above measures are essential so as to reach our turnover target of USD 50 billion by 2029-30, as against present turnover of USD 24.60 billion.

With kind regards,

 

Ramesh Juneja
Chairman
COUNCIL FOR LEATHER EXPORTS