The industry is also urging the government to extend the Production Linked Incentive (PLI) Scheme to the sector.
India should aim to achieve more than $10 billion worth of leather exports by 2025, Union Minister of Commerce and Industry, Piyush Goyal, said on Wednesday.
India is seeking duty free market access for its leather goods in countries, including UAE, UK and Australia, with which it is negotiating Free Trade Agreements to boost manufacturing and exports
'Customs duty hike to make leather expensive', said Alberto Torresi director
India is the second largest global producer of footwear with 2.6 billion pairs/year in 2019, whereas China ranks first with 13.47 billion pairs
The third of a 5-part series analyses the reasons behind the shrinking foothold of the sector
Issues monthly roster for tanneries to operate for 15 days each by rotation
According to commerce ministry data, India imported leather and leather products worth $1.01 billion in FY20
Though they have very few orders in hand right now, they are pinning hopes on leather units catering to the defence sector and police for safety shoes
The manufacturing sector contributes about 15 per cent in the country's economy and the government is aiming to increase it significantly
On the capital issue, he said cost of capital is high in the country and it is difficult to get finance from the banking system
Industry blames state Jal Nigam, which runs the treatment plant, for falling short on its commitment to treat effluents generated by tanneries
Exports from the sector have declined by 4.90 per cent during AprilJune 2019, primarily due to reduction in exports to Europe, which is the major market, accounting for about 53 per cent of exports
Close to 60 per cent of the new allotment has been for tanneries based in Uttar Pradesh
Tanneries looking to re-open will have to satisfy environmental norms of NGT and UP Pollution Control Board
The move would adversely affect leather value chain from tanning to finished goods, especially at a time when finished leather exports were already down, it says
Closure of tanneries pulls down domestic finished leather exports and local price of raw-skin
Over 2 million people are employed in India's leather industry, and 'chamars' or leather makers derive their caste name from their chosen profession
Council for Leather Exports members will participate in all major leather trade fairs in counties such as Italy, Germany, Australia and the US
Investment and technology upgradation are required to make finished leather from semi-finished one.