Budget 2020: Leather industry is hoping for measures to boost exports in today's Budget. Leather industry in India is facing stiff competition from Bangladesh and Vietnam.
The Council for Leather Exports (CLE) expects the government to announce support measures to push leather exports. "With a huge and growing global market, we see very good opportunities for growth this year. We expect additional support measures for the sector in the upcoming Budget for 2020-21 and also in the foreign trade policy which will further catalyse our growth," says CLE Chairman Aqeel Ahmed Panaruna.
FULL COVERAGE: Union Budget 2020
The leather industry holds a prominent place in the Indian economy but the export of leather goods has declined 7.55 per cent to $3.6 billion during April-December period this fiscal. The sector, which is among the top ten foreign exchange earners for the country, has also sought duty exemption on imports of raw materials for non-leather footwear, which it believes has a huge potential for growth.
As per the Directorate General of Commercial Intelligence and Statistics (DGCI &S), the leather footwear constitutes about 39 per cent in value terms in global import of footwear and 14 per cent in volume terms in global export. It employs about 4.4 crore people, mostly from the weaker sections of the society.
The export of footwear, leather and leather products from India reached a value of $5.69 billion during 2018-19, registering 8 per cent YoY growth. The country's exports contracted for the fifth month in a row by 1.8 per cent in December 2019 to $27.36 billion.