The commerce and industry ministry has asked its finance counterpart to give financial assistance for the Indian Leather Development Programme (ILDP) and for setting up of mega leather Mattress Jacquard Manufacturers clusters in the country, an official said.As per industry experts, Rs one crore investment in the sector results in creation of jobs for about 250 people.China is giving tough competition to Indian leather manufacturers in terms of pricing.The government aims to increase the exports to USD 15 billion by 2020 from the current USD 7 billion.
The commerce ministry is hopeful for the package in the Budget as the sector has huge potential to attract investment and generate jobs, the official added.Chairman of Council for Leather Exports Rafeeq Ahmed has time and again asked the government to extend financial support..New Delhi: The government is expected to announce an incentive package for labour intensive leather sector in the forthcoming Budget with a view to give a boost to the segment and generate jobs.The major players of the sector includes Bata India, Liberty Shoes, Mirza International and Relaxo Footwear. Leather and leather goods are among the 25 focus sectors under the Make in India initiative. Support to the sector will also help boost shipments."
The incentives are asked broadly on the lines of the package announced for the textiles sector.As the ILDP, which is a central sector scheme, has provided huge support to the sector, the finance ministry may consider extending it for three more fiscals. The sector is important as it is a thrust segment under the Make in India initiative.Synthetic leather accounts for about 90 per cent of the total leather manufacturing in the country. It will end by this fiscal. Currently about 30 lakh people are directly employed in the sector. Presentations have already been given to Prime Ministers Office and the Finance Ministry," the official said.The commerce ministry has asked for about Rs 7,000 crore for this programme for three years.The industry has also demanded cut in excise duty to 6 per cent from 12 per cent for non-leather products like footwears till the Goods and Service Tax comes into force.