India has potential to become world leader in footwear, leather sector: Goyal

Goyal noted the concerns of the leather industry about import duties on certain types of leather and assured that it will be taken up for consideration.

New Delhi, Jan 04: India has the potential to become a world leader in the footwear and leather sector, said Union Commerce and Industry Minister Piyush Goyal on Tuesday.

Speaking at the Council for Leather Exports National Export Excellence Awards in New Delhi, the minister urged the organisers to explore the possibility of encouraging new companies, entrepreneurs, startups and those who come up with innovative ideas, enter into uncharted territory with newer markets and products, by recognizing them through these awards. He suggested some niche award segments can be created for recognizing their contribution- such as rewarding those who make effective use of FTAs etc.

The Minister said that as we celebrate Azadi Ka Amrit Mahotsav, the industry is hoping to achieve higher exports than last year - both in goods and services. He said while most of the developed world, who are large consumers of leather products, are going through inflation and subdued consumer spending, he was happy to get reassurance from leather sector that it would see higher growth compared to last year, a statement from his ministry said.

The BJP minister asked the leather industry to utilize the Free trade Agreement (FTA) being signed by India with various countries to grow. He cited the example of the UAE, where exports in the sector registered a jump of 64 per cent in November last year as a result of the new agreement. The Minister noted the concerns of the leather industry about import duties on certain types of leather and assured that it will be taken up for consideration.

He also urged the industry stakeholders to avail MOOWR scheme by the Department of Revenue, wherein no duty is to be paid on goods which are being imported for the purpose for exports.

The Minister emphasised that the Indian Industry has huge untapped potential and noted that while the quality of products manufactured is good, more focus is required on packaging and branding to get better value for the product.

Indian Mission across the world can help in providing support in terms of outreach and can help connect them with international companies engaged in the branding business, he said. He encouraged the industry to aspire to set new goals. The Minister said the government are trying to enter into more FTA with other developed nations of the world.

He urged the leather and footwear industry to aim for significant increases over the next 25 years and draw up a plan to achieve those goals. He asked them to look up at expanding horizons- explore new territories and manufacturing new products in India for import substitution.

Goyal reassured that the Government is open to amending any standards which are hurting the interests of the Industry. He also assured full support in terms of setting up testing facilities and laboratories anywhere in the country to meet the needs of the industry. He said the government is willing to engage with the industry on ease of doing business and asked them to give ideas on how to bring improvement in different areas where the industry faces difficulty in business.

Goyal also called for new collaborations with international companies to bring high-quality products into India. He pointed out a few areas of immense potential such as Kolhapuri Chappals and asked young entrepreneurs to go beyond the routine and explore new designs/ branding in this area.

7,000 small industries units are connected with footwear sector which holds great significance to the economy and Foreign Exchange Earnings of the country. "Nearly 40% women are employed in the sector and for every 1000 pairs that are produced/sold, 425 jobs are secured," he had said earlier.

India is the 2nd largest producer of footwear and leather garment and accounts for nearly 3 bn sq.ft of world's tannery.