Leather & Footwear

Finance Minister Announces A Relief Scheme Of Rs 2600 Crore For The Leather And Footwear Sector

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Today a package worth Rs 2600 crore has been approved by the Union Cabinet for generating enough employment opportunities within the next 3 years in the Leather and Footwear sector.

This plan will be put to use throughout the fiscal year 2018-2020 and will cover developing the infrastructure of this sector at the same time addressing the environmental issues hitched to the leather industry, as per the statement given by Press Information Bureau. Also it will facilitate other investments, production technology and job creation.

According to the reports by PIB, this package has the possibility of generating around three hundred and twenty four lakh new jobs within the next three years. Aon an addition, it is believed that the overall impact of the package will further help in generating 2lakh more jobs in the leather, accessories and footwear sector.

In Budget speech 2016-17, Arun Jaitley, Union Finance Minister said that the central government is going to launch a new scheme completely for the betterment of the labors in the footwear and leather industry along with generation of employment, quite similar to that of the textile industry. With due adherence to the Make In India initiative by PM Modi, the ministry of commerce and industry has also called for certain incentives for the leather and footwear sector.

The leather industry of the country underwent huge hardship since the demonetization scheme carried out last year (2016). This will followed by GST (Goods and Services Tax) in 2017 thus leaving the sector to the brink of losses. Also the amount of export from this industry was tumbling enough. This scheme is looked upon as a ray of hope for the leather and footwear sector. 

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