You are all aware that the Government of India has announced several significant support measures for the growth and development of leather industry. These include Rs.2600 crore special package for the leather industry, reduction of GST rates for many leather industry items, extension of additional 2% scrip under Merchandise Exports from India Scheme (MEIS) for notified leather, leather products and footwear beyond June 30, 2018 and relaxation in maintaining average annual export obligation under EPCG scheme.
Though exports from leather sector registered a growth of 1.65% in dollar terms during 2017-18 after experiencing declining trend in the previous two years, the export data for April – May 2018 has shown mixed results. Export of leather footwear, Footwear Components and Saddlery and Harness items have shown growth of 8.32%, 7.85% and 11.81% respectively, while finished leather, leather garments and non-leather footwear have shown decline of 6.95%, 22.39% and 41.99% respectively. Though the decline in exports of some product segments is a worrying trend, I hope that we will be able to make a turnaround in the remaining part of the year. The export trend in a way reflects the uncertainties as well as huge competition prevailing in the global market. Hence, we need to enhance our price competitiveness to consolidate and expand our share in the global market. For this, we need the support of the Government of India in certain focus areas. There is a need to upgrade the infrastructure and connectivity at the existing leather clusters. Besides Design Studios, we need to have Dormitories for workers and also Warehouses with cold storage facility for storing leathers.
I hope that with the support of the Government we will be able to achieve sustainable growth in leather industry in the coming years.