CLE: Budget Announcement For Leather Sector To Boost Exports

The Budget announcement of import duty exemption on certain products such as embellishments and wet blue chrome tanned leather by bonafide exporters will help in boosting the outbound shipments from the sector, CLE said on Wednesday.

Council for Leather Exports (CLE) Chairman Sanjay Leekha said that this is major support that will reduce the cost of import of critical inputs /embellishments, which are imported as per requirements of overseas buyers and will promote export of value-added products from the country.

Finance Minister Nirmala Sitharaman in her Budget speech said that to incentivise exports, exemptions are being provided on items such as embellishment, trimming, fasteners, buttons, zipper, lining material, specified leather, furniture fittings and packaging boxes that may be needed by bonafide exporters of handicrafts, textiles and leather garments, leather footwear and other goods.

"The budget has announced major support measures, which will provide a fillip to the growth of exports from the leather and footwear industry," Leekha said. He also said that the extension of the date for commencement of manufacturing operations for newly incorporated domestic manufacturing companies from March 31, 2023, to March 31, 2024, for availing concessional corporate tax of 15 per cent will promote investments in the sector.

"Extension of Emergency Credit Line Guarantee Scheme (ECLGS) scheme will enable MSMEs to get additional credit at concessional interest rates," he noted. The leather and footwear industry is looking to expand its export turnover from USD 5.09 billion in 2019-20 to USD 10 billion by 2025-26 and the domestic industry turnover from USD 12 billion in 2019-20 to USD 20 billion by 2025- 26, he said. "The announcements made in the Union Budget 2022-23 will immensely help in achieving these targets," Leekha said.

(PTI)