Union Cabinet Committee, Central Govt. approves special package for Footwear and Leather Sector. Subsequently, this package is to create employment opportunities. Accordingly, this special assistance will create 3.24 lakh jobs in the upcoming 3 years (2017-20). In addition to this, central government is going to provide this assistance to formalize around 2 lakh jobs. Henceforth, the cost for this package is Rs. 2600 crore.
As per the reports of ICRA, the value of rupees raises in the International market as compared to the British Pound. Moreover their are less number of customers in European Union. This hits the footwear exporters while this sector has seen a healthy growth in India. So, the central govt. is giving this package due to its vast scope.
This package will raise exports, generate employment opportunities and will further make this leather sector to stand competitive in the international market.
Special package for Leather Sector
Indian footwear and leather industry are on their peak. This healthy growth is due to increase in the demand for footwear and average selling price (ASP). Subsequently, Department of Industrial Policy and Promotion (DIPP) urges the finance ministry for a special package. DIPP demanded Rs. 4000 crore in order to support the leather and footwear sector.
Now, the central govt. approves a revised policy. Subsequently, Indian Leather Development Programme (ILDP) is extended for the next 3 years (upto the financial year 2020). In accordance with the demand of DIPP, central govt. approves package of Rs 2600 crore.
Arun Jaitley, Finance Minister also announces in the Union budget that the central government will launch a special scheme for the leather and footwear sector following the lines of allotment of Rs. 6000 crore package for the textiles sector in the previous financial year.
Furthermore, this special package for the Leather Sector scheme will provide a major boost for exports, creation of employment opportunities and make leather and footwear sector as per the global standards.
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