Leather & Footwear Sector Gets Rs 1.1 Tn Export Boost: CLE

(MENAFN- KNN India) New Delhi, Feb 3 (KNN) The Council for Leather Exports (CLE) has projected significant growth potential following the Union Budget's announcement of a focused product scheme for the footwear and leather sectors.

According to a statement released on Sunday, the initiative is expected to boost exports by more than Rs 1.1 trillion while enhancing both productivity and competitiveness.

CLE Chairman Rajendra Kumar Jalan detailed the scheme's comprehensive approach, highlighting its support for critical areas including design capacity development, component manufacturing advancement, and machinery procurement for non-leather footwear production.

The initiative carries substantial economic implications, with projections indicating the creation of 22 lakh jobs and an anticipated turnover of Rs 4 trillion.

The scheme's strategic focus on attracting investments is poised to strengthen the sector's component and machinery ecosystem, according to Jalan. This development comes as particularly significant for an industry that recorded exports of USD 4.69 billion in 2023-24.

In a related policy shift that promises to further bolster the sector, CLE Executive Director R Selvam welcomed the government's decision to eliminate the 20 percent export duty on crust leather and reduce the 10 percent import duty on wet blue leather.

These tax adjustments are expected to reinvigorate the tanning industry while simultaneously promoting the export of value-added products from India.

The comprehensive policy measures reflect the government's commitment to enhancing India's position in the global leather and footwear market, with a clear focus on modernisation, employment generation, and export growth.

These developments align with broader initiatives to strengthen India's manufacturing capabilities and export competitiveness.

(KNN Bureau)

MENAFN03022025000155011030ID1109162706