New Delhi Commerce and Industry Minister Piyush Goyal said on Wednesday that India is seeking duty-free market access for its leather goods in countries including the United Arab Emirates, the UK and Australia, with which it is free to promote manufacturing and exports. Negotiating trade agreements (FTAs).
He also expressed hope that talks for a similar agreement with the GCC (Gulf Cooperation Council) group would be started in January or February next year.
The member countries of the GCC are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE).
“We are trying to make market access duty free for our leather industry and that is one of our major questions when we are talking to UAE, UK and Australia… I hope Israel is ours too. may open its doors to leather products.
“We are looking at all these countries and talking to them for better market access and better opportunities for your region,” Goyal said at the National Export Excellence Awards ceremony here.
The event was organized by the Council for Leather Exports (CLE).
The Minister asked the industry to work on scale and quality to make India a major hub for global brands.
He said that the industry should not wait for measures to support the government and work on its strength to boost growth.
Speaking at the event, CLE Chairman Sanjay Leekha said that the industry has set an export target of USD 5.89 billion for the current year and aims to reach USD 10 billion by 2025.
“In addition, we are targeting to take the domestic leather products and footwear business to US$20 billion by 2025, from the current US$12 billion,” he added.
He also urged the government to pass on the benefits of the Production-Linked Incentive (PLI) scheme to the sector as it would help boost manufacturing, create employment and increase exports.
Further, he requested for a mega park scheme for leather sector and setting up of micro clusters near the existing traditional clusters with plug-and-play model to promote rapid capacity expansion.
“Price competitiveness is the key to achieving success in the global market. Since we are a supplier of global brands, we need to procure raw materials and inputs from nominated overseas suppliers.
“Therefore, restoration of the original customs duty exemption on wet blue, crust and finished leather is of utmost importance to grow our business with the brands,” Leekha said.
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