In­dia | In­ter­na­tional

Shoes & Accessories - - Contents -

Union Min­is­ter Suresh Prabhu un­der­lined the Cen­tre’s com­mit­ment to the leather in­dus­try at a meet­ing held in Chen­nai on the 4th Au­gust, 2018. Speak­ing at an in­ter­ac­tive ses­sion or­ga­nized by Coun­cil for Leather Ex­ports (CLE), he said the mat­ter has al­ready has al­ready been taken up with the State gov­ern­ment. “Apart from as­sur­ing the State gov­ern­ment to set up new leather clus­ters, the Cen­tre is also ready to pro­vide ad­di­tional fa­cil­i­ties,” the union min­is­ter said. He cited the ` 2600 crore pack­age ap­proved for the sec­tor ear­lier. He added that the Cen­tre was will­ing to sanc­tion a new mega leather clus­ters for Tamil Nadu. The min­is­ter as­sured state gov­ern­ments of help in set­ting up new leather clus­ters or pro­vid­ing ad­di­tional fa­cil­i­ties. “We are com­mit­ted to de­velop this in­dus­try. And you should thank Prime Min­is­ter Naren­dra Modi. We ap­proved a mas­sive pack­age of ` 2600 crore,” he said. This was a ‘trans­par­ent’ pack­age; he said and urged the in­dus­try to make the most if it. The gov­ern­ment had ear­lier ap­proved the pack­age for em­ploy­ment gen­er­a­tion in the leather and footwear sec­tors which has the po­ten­tial to gen­er­ate 3.24 lakh new jobs in three years and as­sist in for­mal­iza­tion of two lakh jobs.

The pack­age in­volves im­ple­men­ta­tion of cen­tral scheme, ‘In­dian Footwear, Leather & Ac­ces­sories De­vel­op­ment Pro­grammed’ over three fi­nan­cial years from 2017-18 to 2019-20. The min­is­ter said the Cen­tre was “will­ing” to sanc­tion a new mega leather clus­ter in Tamil Nadu and said the mat­ter has al­ready been taken up with the state gov­ern­ment. He said as­sur­ances have been made to Ut­tar Pradesh and West Ben­gal to help boost the sec­tor in these states. “Any gov­ern­ment wants to do this, we will be very happy to sup­port,” he added. The min­is­ter said while the Cen­tre has al­ready sanc­tioned five com­mon ef­flu­ent treat­ment plants, nine were await­ing ap­proval.the dec­la­ra­tions of sup­port from the Com­merce Min­is­ter have been met with en­thu­si­asm as well as calls for fur­ther gov­ern­ment ac­tion to pro­tect and nur­ture the coun­try’s leather in­dus­try. CLE has re­vealed that it is tar­get­ing a growth in ex­ports of $10bn by 2024-25 from the present $5.73bn.

The tar­get was un­veiled as the coun­cil is­sued its de­tailed ac­tion plan – Strat­egy for Growth of Leather Sec­tor – that fo­cused on restor­ing leather as a vi­tal and grow­ing in­dus­try on the sub-con­ti­nent. This is seen as crit­i­cal given re­cent falls in out­put, hav­ing reached a peak of $6.49bn in 2014-15). CLE high­lighted the growth of com­peti­tors’

mar­ket share as a real chal­lenge. Viet­nam, for in­stance, has seen its ex­ports in­crease by 46% in re­cent years, in marked con­trast to In­dia’s slow­down.

Mukhtarul Amin said, “We need gov­ern­ment sup­port in get­ting land at cheaper rates for mega units and favourable labour laws keep­ing in view the sea­sonal na­ture of the in­dus­try, and avail­abil­ity of fi­nance at lower in­ter­est rates.”

Re­fer­ring to the ` 2,600 crore pack­age ap­proved for the sec­tor, which was aimed at gen­er­at­ing em­ploy­ment in leather, and footwear sec­tors, the min­is­ter termed it as a trans­par­ent pack­age and wanted the in­dus­try to make the most of it, while re­it­er­at­ing the gov­ern­ment’s com­mit­ment to de­velop this in­dus­try.” He added that the leather and footwear sec­tors have the po­ten­tial to gen­er­ate 3.24 lakh new jobs in three years. The pack­age in­volves im­ple­men­ta­tion of Cen­tral scheme, “In­dian Footwear, Leather & Ac­ces­sories De­vel­op­ment Pro­gramme” over three fi­nan­cial years from 2017-18 to 2019-20. The min­is­ter said while the Cen­tre has al­ready sanc­tioned five com­mon ef­flu­ent treat­ment plants, nine were await­ing ap­proval, he said.

Ear­lier, the min­is­ter pre­sented a Life­time Achieve­ment Award to M Mo­hammed Hashim, founder chair­man, CLE. Hashim is the founder chair­man of Coun­cil for Leather Ex­ports and is the Chair­man, KH Ex­ports In­dia Pvt Ltd, Chen­nai. He is an ac­tive leader of the leather and footwear in­dus­try and has made a mark for him­self through his fu­ture ori­ented ap­proach in­clud­ing pro­mo­tion of ex­ports of value added prod­ucts, im­ple­men­ta­tion of eco-friendly tan­ning tech­nolo­gies. He is a multi-faceted per­son­al­ity who is also ac­tively in­volved in ed­u­ca­tion and so­cial work. He has served as Pres­i­dent of All In­dia Skin and Hide Tan­ners and Mer­chants As­so­ci­a­tion (AISHTMA).

The min­is­ter urged the mem­bers of CLE to make In­dia the global footwear-man­u­fac­tur­ing hub in the near fu­ture. He said, “In­dian footwear in­dus­try has a huge po­ten­tial for ex­port and em­ploy­ment gen­er­a­tion. In­dia would be a global hub for man­u­fac­tur­ing to cater to a vast de­mand of shoes and other footwear. The gov­ern­ment has geared up to for­mu­late a strate­gic plan for a mean­ing­ful in­ter­face with dif­fer­ent states as well as trade bod­ies for global pro­mo­tion of the footwear in­dus­try.” The min­is­ter thanked M. Amin -Chair­man for or­ga­niz­ing the meet and ap­pre­ci­ated PR Aqeel -Vice chair­man par­tic­u­larly say­ing that he has con­sis­tently demon­strated great com­mit­ment and en­thu­si­asm in coun­cil’s mat­ters.

CLE’S core mem­bers who presided over the meet were Mukhtarul Amin – Chair­man, Rafeeque Ahmed, for­mer Chair­man, PR Aqeel Ahmed – Vice Chair­man, Re­gional Chair­man’s – Is­rar Ahmed(south), Pu­ran Dawar (North), Ramesh Juneja (East), Naresh Bhasin (West), R. Sel­vam, IAS – Ex­ec­u­tive Di­rec­tor and was at­tended by 300 plus mem­bers of CLE from across the re­gions.

Two-day Event (9.00 am to 6.00 pm). 68 Ex­hibitors - Lead­ing Man­u­fac­tur­erEx­porters of Leather Prod­ucts ▶ ▶ Dis­play of Footwear & Com­po­nents (Up­pers), Leather Ap­par­els, Leather Goods& Ac­ces­sories, Leather Gloves. ▶ ▶ One-to-one busi­ness meet­ings

Coun­cil for Footwear, Leather & Ac­ces­sories (CFLA) has been urg­ing the gov­ern­ment to re­duce GST rate for the footwear sec­tor. In a re­cent rep­re­sen­ta­tion to in­terim Fi­nance Min­is­ter Piyush Goyal, CFLA sought re­duc­tion in the GST rate from the cur­rent 18 per­cent to 12 per cent for shoes priced above ` 1,000. Its Chair­man, Adesh Gupta said that the cur­rent 18% GST on footwear is very high and is al­ready slow­ing down the growth of the footwear in­dus­try. The re­cent an­nounce­ment of pack­age of ` 2,600.- crores by the Gov­ern­ment for the footwear sec­tor is ex­pected to ben­e­fit mainly ex­porters. Gupta, along with In­der Dev Singh Musafir, Vice Chair­man, CFLA re­cently met Goyal and dis­cussed steps needed to be taken for the de­vel­op­ment of the footwear sec­tor. The en­tire dis­cus­sion with the min­is­ter was cen­tered around the ne­ces­sity of fur­ther re­duc­tion of GST rate for the sec­tor to 12% to pro­mote the "Make in In­dia" ini­tia­tive launched by Prime Min­is­ter. The min­is­ter was very pos­i­tive, re­cep­tive on fur­ther re­duc­tion in GST rate for footwear, he cat­e­gor­i­cally men­tioned that in the last GST meet­ing, he even pro­posed to the GST Coun­cil 5% rate for all kinds of footwear to sup­port the in­dus­try or even of­fered 12% on shoes above ` 1,000. How­ever, some of the States did not agree to rate re­duc­tion and hence the mat­ter was re­ferred to the Fit­ment Com­mit­tee for its eval­u­a­tion. It is hoped thatthis is­sue will be taken up se­ri­ously in the next GST Coun­cil meet­ing and the footwear in­dus­try can ex­pect some pos­i­tive out­come.

(L-R) Anil Agar­wal - Joint Sec­re­tary DIPP, PR Aqeel Ahmed - Vice Chair­man CLE, Suresh Prabhu - Min­is­ter of Com­merce & In­dus­try and Civil Avi­a­tion, Mukhtarul Amin - Chair­man CLE, R. Sel­vam - Ex­ec­u­tive Di­rec­tor CLE.

(L-R) Pu­ran Dawar, Nalin Kohli, Shazia Ilmi & Manoj Tuli

Suresh Prabhu - Min­is­ter of Com­merce & In­dus­try and Civil Avi­a­tion & Mukhtarul Amin - Chair­man CLE

Suresh Prabhu - Min­is­ter of Com­merce & In­dus­try and Civil Avi­a­tion fe­lic­i­tat­ing M Mo­hammed Hashim - Founder Chair­man CLE

PR Aqeel Ahmed with Nalin Kohli - spokesper­son for the Bharatiya Janata Party (BJP)

Dis­tin­guished CLE mem­bers in au­di­ence

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