The Council for Leather Exports is optimistic that the Union Budget would help the sector
04 February 2022, Mumbai:
The Council for Leather Exports is optimistic that the 2018 Union Budget's leather-related initiatives would enhance exports and benefit micro, small, and medium-sized businesses.
According to the Press Trust of India, CLE Chairman Sanjay Leekha remarked after the new budget was revealed, "The budget has announced important support measures, which would offer a fillip to the growth of exports from the leather and footwear sector."
The CLE said on February 2 that the budget's exemption of decorations and wet blue chrome tanned leather from import tariff will assist enhance outbound exports of leather goods.
According to the CLE, the government is assisting to encourage the export of value-added products by lowering the price of importing important components for producing leather goods that are demanded by overseas clients.
This would enhance the industry as a whole. A revised start date for manufacturing activities for newly established domestic manufacturing enterprises is also included in the budget.
For enterprises intending to take advantage of the 15% corporation tax exemption aimed to encourage investment, the deadline has been pushed back from March 31, 2023 to March 31, 2024.
"By extending the Emergency Loans Line Guarantee Scheme, MSMEs would be able to obtain extra credit at lower interest rates," Leekha explained. By the end of the 2026 fiscal year, India's leather and footwear sector hopes to have reached a total export value of $10 billion and a domestic value of $20 billion.
"The measures made in the Union Budget 2022-23 will go a long way toward attaining these goals," Leekha stated.
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*Figures mentioned in the above article have been sourced from Fashion Network article.
