India’s leather and footwear exports are expected to touch about $6 billion in this fiscal on account of healthy demand in key global markets, according to the Council for Leather Exports (CLE), which recently urged the government to release pending refunds under the Merchandise Export From India Scheme (MEIS) as liquidity crunch is a major concern for exporters now.
Similarly, this year's all industry rates of drawback should be immediately revised to compensate for the duties imposed on the wet blue, crust and finished leather as well as embellishments used in production, CLE chairman Sanjay Leekha told a news agency.India's leather and footwear exports are expected to touch about $6 billion in this fiscal on account of healthy demand in key global markets, according to the Council for Leather Exports, which recently urged the government to release pending refunds under the Merchandise Export From India Scheme as liquidity crunch is a major concern for exporters now.#
"The ministry of commerce and industry has set up a reasonable target of $5.88 billion for the leather and footwear export sector and CLE is confident to achieve the target comfortably by the end of 2021-22," he said.
He informed that the industry is labour intensive, providing employment to 45 lakh people. The sector has a total turnover of $17.09 billion, which includes exports of $5.09 billion and domestic industry turnover of $12 billion during 2019-20.
"The sector has the potential to reach a total turnover of $30 billion in next five years, which includes the domestic turnover of $20 billion and export turnover of $10 billion and generate additional employment for 15 lakh more people," he added.
He also requested the government to extend the production-linked incentive scheme (PLI) to the sector.
Fibre2Fashion News Desk (DS)
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