Production Linked Incentive Scheme (PLI) may kindly be extended to the leather and footwear sector.

Council for Leather Exports participated in the Hon’ble Prime Minister of India’s virtual address to the exporters for the roadmap to achieve USD 400 bn. merchandise exports in the FY 2021-22 on 6th Aug. 2021. CLE joined the address from its head office, Chennai and from its three regional offices viz. New Delhi, Kanpur, and Chennai. Shri Sanjay Leekha, Chairman CLE was present during the address of the Hon’ble Prime Minister along with prominent exporter members.

He informed that the leather and footwear industry is a labor-intensive sector, providing employment to 45 lakh people, 45% of whom are women. The sector has a total turnover of USD 17.09 billion, which includes exports of USD 5.09 billion and domestic industry turnover of USD 12 billion during 2019-20. He shared with the media that the ministry of commerce & industry has set up a reasonable target of USD 5.88 bn. for the leather & footwear export sector and CLE is confident to achieve the target comfortably by the end of FY 2021-22.

He also added that the sector has the potential to reach a total turnover of USD 30 billion in the next five years, which includes the domestic turnover of USD 20 billion and export turnover of USD 10 billion and generate additional employment for 15 lakh more people.

Considering the need to ensure sustainable growth and development of the industry both at the domestic and export front and to attract investments, it is requested to the government of India that the Production Linked Incentive Scheme (PLI) may kindly be extended to the leather and footwear sector.

Chairman CLE also informed that the Leather and footwear sector is fully committed to achieving the Hon’ble Prime Minister of India’s vision of USD 400 bn. the target of merchandise exporters set up for the FY 2021-22.

He urged on behalf of members of CLE that exporter members feel that nonavailability of the liquidity is the major concern as of now which may be immediately corrected by releasing exporters due to funds in the shape of last year’s MEIS and this year’s RODTEP. Similarly, this year All Industry Rates of Drawback should be immediately revised of Chapters 41, 42, 43 & 64 to compensate the duties imposed on the wet blue, crust, and finished leather as well as embellishments used in production.