The country’s leather industry is one of the largest in the world, with a significant presence in the global market. India is the second-largest producer of leather goods in the world, accounting for around 25 per cent of global production.
The Leather Industry in India
The Indian leather industry is a significant contributor to the country’s economy, with a history dating back to the 19th century.
Indian exports on the rise, driven by steady growth and increasing global demand.
The Indian Export Sector: A Growing Force in Global Trade
The Indian export sector has been a significant contributor to the country’s economic growth, with a total turnover of approximately $19 billion. This substantial figure encompasses not only domestic sales but also exports, which account for a substantial portion of the total turnover.
The Current Situation
The export duty on wet blue and crust has been in place since 2015, and it has been a contentious issue among textile manufacturers and exporters. The current rate of 20% has been criticized for being too high, leading to increased costs for exporters and reduced competitiveness in the global market.
Key Concerns
The Council’s Proposal
The council has proposed removing the export duty on wet blue and crust, which would significantly reduce the costs for exporters and increase their competitiveness in the global market. This move would also help to boost the growth of the textile industry.
Benefits of Removing the Export Duty
The Finance Ministry’s Response
The finance ministry has been urged to consider the council’s proposal, but no official decision has been made yet.
On challenges, he said the industry has to work on adequate skilled labour and design development.
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