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The Indian leather industry needs to partner with foreign brands for joint ventures to attract investments into the sector, according to the Union Minister of State for Commerce and Industry S. Jagatrakshakan.
Addressing the inaugural function of the India International Leather Fair 2013, he said 100 per cent Foreign Director Investment is allowed through the automatic route.
But investments have not been encouraging enough even though India is recognised globally as an important production centre.
Global brands
It is time for Indian companies to partner with international brands. The Government allocated over Rs 1,250 crore to the leather sector for modernisation of tanneries, leather clusters and leather industrial parks during the 11th Plan. In the current 12th Plan about Rs 800 crore is proposed under the leather development programme. The Government hopes to double exports by 2016 from the present $5 billion, the Minister said.
Infra hurdles
Rajendra K. Jalan, Chairman, Council for Leather Exports, said inadequate infrastructure to expand scale of operations and shortage of skilled human resource are major constraints for the leather sector.
Jalan sought total exemption from central excise for rubber slippers, safety footwear and protective leather wear. Central excise exemption should be hiked to Rs 1,000 a pair from the present Rs 500, he said.
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