Leather and Footwear Exports Receive Significant Government Boost
The Indian leather and non-leather footwear sector is poised for a major transformation following recent government initiatives aimed at boosting exports and creating substantial employment opportunities. According to industry experts, these strategic steps will not only enhance the ease of doing business but also generate significant job growth across the country.
Duty-Free Imports Under IGCR Scheme
Israr Ahmed, Managing Director of Farida Group, highlighted a key development in the sector. Previously, specific imports required for manufacturing shoe uppers were subject to duties, but the government has now announced that these items will be brought under the Import of Goods on Concessional Rate of Duty (IGCR) scheme, making them duty-free. This move is expected to reduce production costs and increase competitiveness in the global market.
Extended Export Timeline for Enhanced Flexibility
Under the IGCR scheme, when specific inputs are imported, they must be exported within six months, or exporters need to seek an extension. The government has now increased the extension condition to one year, providing greater flexibility and easing operational challenges for exporters. This change is anticipated to streamline processes and support long-term planning in the industry.
Potential for Massive Employment Generation
The Council for Leather Exports has projected that this initiative has the potential to generate approximately two to three lakh additional jobs in the sector. By reducing import duties and extending export timelines, the government aims to stimulate growth, attract investments, and create a more robust ecosystem for leather and footwear manufacturing.
Context Amid Budget Reactions
This development comes against the backdrop of mixed reactions to the Union Budget 2026-27. While some have criticized the budget, the focus on sector-specific measures like the IGCR scheme underscores the government's commitment to fostering industrial growth and employment. The budget also includes changes in income tax slabs and adjustments in prices for various goods, but the leather and footwear sector stands out as a key beneficiary of targeted policy interventions.
Overall, these steps are set to enhance India's position in the global leather and footwear market, driving exports and contributing to economic development through job creation and improved business efficiency.
