According to some industry experts, it has been stated that an investment worth Rs 1 crore in the Leather and Footwear sector has resulted into the creation of about 250 job opportunities. On Wednesday, Arun Jaitley, Union Finance Minister announced some plans for launching a scheme that will help in the betterment of this sector, taking it to a position quite similar to that of the textile industry. Eventually it will help in expanding the job opportunities.
He added that while a special scheme has been launched in the textile sector for the purpose of generating employment, one such will also be launched for the footwear and leather sector. A special scheme worth Rs 6,000 crore has been approved by the Government in the month of June, 2016 for the apparel and textile industry with the aim of creating 1 crore job opportunities in the next 3 years. This managed attracting investments worth $11billion and in turn generating exports amounting to $20 billion.
The announcement is looked upon as a significant one since incentives have been suggested for the footwear and leather sector by the Ministry of commerce and Industries. Presently, around 30, 00,000 people are employed directly into this sector.
If seem from the competitive aspect, China is one giving tough fight to the leather manufacturers in India, especially from the pricing perspective. The government is aiming to enhance the sectoral exports by the year 2020 to dollar 15 billion from the present rate of $7 billion.