Council for Leather Exports confident Union Budget will aid industry

By

Isabelle Crossley

Published
Feb 3, 2022

The Council for Leather Exports has expressed its confidence that the new Union Budget’s measures for the leather industry will boost exports and help support micro, small, and medium enterprises. 

“The budget has announced major support measures, which will provide a fillip to the growth of exports from the leather and footwear industry,” said CLE chairman Sanjay Leekha after the new budget was announced, the Press Trust of India reported. 
 
The exemption of products including embellishments and wet blue chrome tanned leather from import duty in the budget will help to increase outbound shipments of leather goods, the CLE said on February 2. By reducing the price of importing essential components for manufacturing leather goods, which are requested by overseas buyers, the government is helping to promote the export of value-added products which will boost the sector as a whole, according to the CLE. 

The budget also includes an extension of the commencement date for manufacturing operations for newly incorporated domestic manufacturing companies. The date has been postponed from March 31, 2023 to March 31, 2024  for businesses wishing to avail the 15% concessional corporate tax which is designed to promote investments.

“Extension of Emergency Credit Line Guarantee Scheme scheme will enable MSMEs to get additional credit at concessional interest rates,” said Leekha. 
 
India’s leather and footwear industry has the target of reaching an export total of $10 billion by the 2026 financial year and a domestic total of $20 billion in the same time period.

“The announcements made in the Union Budget 2022- 23 will immensely help in achieving these targets,” said Leekha.