Lok Sabha Question No. 4316 (UNSTARRED), answered on 2019-01-07
Subject: Promotion of Leather Industries
Ministry: COMMERCE AND INDUSTRY
Asked by: SUDHEER GUPTA, KUNWAR HARIBANSH SINGH, VIJAY KUMAR S.R., ASHOK SHANKARRAO CHAVAN

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 4316.

TO BE ANSWERED ON MONDAY, THE 7 TH  JANUARY, 2019.

## PROMOTION OF LEATHER INDUSTRIES

## 4316.  SHRI SUDHEER GUPTA:

SHRI S.R. VIJAYAKUMAR:

SHRI ASHOK SHANKARRAO CHAVAN:

KUNWAR HARIBANSH SINGH:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) the  details  of  share  of  India  in  World  trade  of  leather  and  leather  products along  with  the  total  quantity  and  value  of  leather  and  leather  products exported during each of the last three years;
- (b) whether the Government is  implementing schemes for setting up of leather parks to promote leather industries in the country;
- (c) if  so,  the  details  and  the  salient  features  thereof  along  with  their  existing location,  State/UT-wise;
- (d) the total outlay under the scheme during the 12th Five Year Plan along with the funds utilized therein so far; and
- (e) the steps taken/being taken by  the Government to boost the export of leather and leather products from the country?

## ANSWER

वाणिज् य एवं उद्योग मंत्रालय में राज् यमंत्री (श्री सी.आर. चौधरी) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI C.R. CHAUDHARY)

- (a): As per information received from Council for Leather Exports (CLE), the share of India in world trade of leather and leather products is as given below:-

| Particulars                  | 2015         | 2016         | 2017         |
|------------------------------|--------------|--------------|--------------|
| Global Import - Billion USD  | 183.28       | 180.11       | 188.44       |
| Particulars India's Export - | 2015-16 5.99 | 2016-17 5.67 | 2017-18 5.71 |
| %share of                    | 3.27%        |              | 3.03%        |
| India                        |              | 3.15%        |              |

The value of leather and leather products exported during the last 3 years is as given below.

## India's Exports Leather and Leather Products - Value in US$ Mn

| Products             |   2015-16 |   2016-17 |   2017-18 |
|----------------------|-----------|-----------|-----------|
| FINISHED LEATHER     |   1046.45 |    886.39 |    874.23 |
| LEATHER FOOTWEAR     |   2147.98 |   2128.87 |   2193.61 |
| FOOTWEAR COMPONENTS  |    284.34 |    298.69 |    335.24 |
| LEATHER GARMENTS     |    553.11 |    535.66 |    518.96 |
| LEATHER GOODS        |   1370.04 |   1316.63 |   1365.33 |
| SADDLERY AND HARNESS |    146.38 |    142.35 |    155.88 |
| NON-LEATHER FOOTWEAR |    306.74 |    338.21 |    296.68 |
| TOTAL                |   5855.04 |   5646.8  |   5739.93 |

*Source Data - Directorate of Commercial Intelligence and Statistics (DGCI&S)

The  quantity-wise  data  of  export  of  leather,  leather  products  and footwear is as given below:

(Quantity in Millions)

2015-16

| Products                       |   2015-16 |   2016-17 |   2017-18 |
|--------------------------------|-----------|-----------|-----------|
| FINISHED LEATHER ( SQ.FT)      |    836.88 |    688.81 |    705.87 |
| LEATHER FOOTWEAR ( PAIRS)      |    105.54 |    104.38 |    112.19 |
| FOOTWEAR COMPONENTS ( PAIRS)   |     64.03 |     44.61 |     46.41 |
| LEATHER GARMENTS ( PIECES)     |      9.38 |      7.43 |      8.16 |
| LEATHER GLOVES (PAIRS)         |    149.05 |    156.69 |    148.76 |
| LEATHER GOODS ( PIECES)        |    157.22 |    141.09 |    143.8  |
| SADDLERY AND HARNESS ( PIECES) |     19.41 |     19.36 |     32.49 |
| NON-LEATHER FOOTWEAR ( PAIRS)  |     13.6  |     24.22 |     24.04 |

(source: CLE Membership data)

- (b) & (c): Yes. 'Mega Leather Footwear and Accessories Cluster (MLFAC)' subscheme  of  'Indian  Footwear  Leather  and  Accessories  Development Programme  (IFLADP)'  scheme  is  being  implemented  for  the  period 2017-2020  under  which  assistance  is  provided  for infrastructural support to the leather, footwear and accessories sector by establishment  of  Mega  Leather,  Footwear  and  Accessories  Cluster. Graded  assistance  is  provided  upto  50%  of  the  eligible  project  cost, excluding  cost  of  land  with  maximum  Government  assistance  being limited  to  Rs.  125  crore.  As  on  date,  approval  has  been  provided for setting up of MLFAC with Government of India assistance of Rs. 125 crores  at  Kota  Mandal,  Nellore  District,  Andhra  Pradesh  and  inprinciple approval has been given for setting up of MLFAC at Bantala, Kolkata, West Bengal.
- (d): The total outlay under Indian Leather Development Programme (ILDP) implemented during 12 th Five Year Plan was Rs. 990.36 crore and the total funds utilized under ILDP scheme during 12 th Five Year Plan were Rs. 1145.01 crore.
- (e): The  Government  has  approved  implementation  of  central  sector scheme  'Indian  Footwear,  Leather  and  Accessories  Development Programme (IFLADP)' with an approved expenditure of Rs. 2600 crore over three financial years i.e. 2017-18 to 2019-20 to create infrastructure for leather, footwear and accessories sector. Further, as per  the  information  received  from  Council  for  Leather  Exports  (CLE), the following steps have been taken to boost the export of leather and leather products.
- (i) 2%  across  the  board  enhancement  of  duty  credit  scrip  under Merchandise Exports from India Scheme (MEIS) for shipments made  from  1.11.2017  and  reduction  in  GST  rates  for  leather industry items - for finished leather from 12% to 5%, for certain leather chemicals , leather goods, leather garments and saddlery items from 28%  to 18%, for Common  Effluent Treatment Plants (CETPs) from 18% to 12%, for job work from 18% to 5% and for footwear with MRP above Rs.500/- and upto Rs.1000/- from 18% to 5%;
- (ii) Enhancement  of  duty  free  limit  for  import  of  critical  import  by manufacturer exporters of footwear and other leather products from 3% to 5% of FOB value of exports in the previous year, as announced in Union Budget 2017-18;
- (iii) Enhancement  of  interest  equalization  rate  from  3%  to  5%  for Micro Small and Medium Enterprises (MSME) units w.e.f. Nov. 2, 2018 on pre-shipment and post-shipment rupee export credit.

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