Market access

India seeks duty-free market access for leather goods under FTAs

India is seeking duty-free access for its leather goods in countries, including the UAE, UK and Australia, with which it is negotiating Free Trade Agreements (FTAs) to boost manufacturing and exports, Trade and Industry Minister Piyush Goyal said on Wednesday.

He also expressed hope that talks for a similar deal with the GCC (Gulf Cooperation Council) group will be launched in January or February next year.

GCC member countries are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE).

“We are trying to get duty-free market access for our leather industry and that is one of our main demands when we talk to the UAE, the UK and Australia… I hope that Israel can also open its doors for our leather products. .

“We are looking at all of these countries and talking to them for better market access and better opportunities for your industry,” Goyal said at the National Export Excellence Awards ceremony here.

The event was organized by the Leather Export Council (CLE).

The minister called on the industry to work on scale and quality to make India a major hub for global brands.

The industry should not wait for government support measures and work on its strengths to revive growth, he added.

Speaking at the event, CLE Chairman Sanjay Leekha said the industry has set an export target of $5.89 billion for the current year and is aiming to reach $10 billion by 2025.

“In addition, we aim to achieve a domestic leather goods and footwear sales of $20 billion by 2025 from the current sales of $12 billion,” he said. declared.

He also urged the government to extend the benefits of the Production Linked Incentive Scheme (PLI) to the sector as it would help boost manufacturing, create jobs and increase exports.

In addition, he requested a mega park project for the leather sector and the establishment of micro-clusters near existing traditional clusters with a plug-and-play model to promote faster capacity expansion.

“Price competitiveness is the key to success in the global market. As we are the supplier of global brands, we are required to source raw materials and inputs from designated overseas suppliers.

“Therefore, reinstating basic duty exemption on wet, crust and finished blue leathers is extremely important to improve our business with brands,” Leekha said.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor