Press Information Bureau

Government of India

Ministry of Commerce & Industry

12-December-2011 16:27 IST

As per available information the production and export of leather products during last three years is as follows: 

Production:

(Source: Website of Ministry of Statistics & Programme Implementation)

Export :

(Source: Directorate General of Commercial Intelligence and Statistics (DGCI & S) 

The decline in exports during the year 2009-10 was due to the adverse impact of the global financial crisis 

The Government is implementing Indian Leather Development Programme (ILDP) in the XI Five year plan with an outlay of Rs.1251.29 crore in order to promote the growth of the sector in critical areas namely capacity modernization & technological upgradation, environment management, human resources development etc., For promotion of exports, Government of India has identified leather sector as a Focus Sector in Foreign Trade Policy 2009-14 which, inter- alia, includes facilities such as

a) allowing duty free import of critical inputs to the extent of 3% of FOB value of export realization in the previous year

b) duty credit scrip of 4% for notified leather products and footwear & 2% duty credit scrip for finished leather under Focus Product Scheme

c) Zero Duty Export Promotion Capital Goods Scheme (EPCG) to facilitate import of machinery

d) 1 % duty credit scrip under Status Holders Incentive Scrip Scheme for status holders in leather sector (except finished leather segment) for import of capital goods under actual user condition. 

As a result of various steps taken by the Government, the export of leather products has increased in the year 2010-11.  

This information was given by Shri Jyotiradiya M. Scindia, Minister of State for Commerce & Industry in written reply to a question in Lok Sabha today.

DS/GK

Export incentive measures for leather sector expand duty-free inputs and duty credit scrips to promote exports. The Indian Leather Development Programme funds capacity modernisation, technology upgradation, environment management and human resources development. Under the Foreign Trade Policy 2009-14 the leather sector is a Focus Sector, with measures including duty-free import of critical inputs linked to prior export realisation, duty credit scrips for notified leather products and finished leather, zero-duty EPCG for capital goods imports, and a status-holder incentive scrip for capital goods under actual user conditions.