India’s department for promotion of industry and internal trade (DPIIT) is aware of goods and services tax (GST) problems in the leather sector and has forwarded proposals to the finance ministry to reduce GST rates on certain segments of the sector, DPIIT additional secretary Rajeev Singh Thakur, said at an event in New Delhi recently.
The PLI scheme offers financial incentives to as many as 14 sectors, including textiles.
The leather industry has been demanding that GST be reduced to 5 per cent from the current rate of 12 per cent.
As the production-linked incentive (PLI) scheme has yielded significant dividends, the Indian government wants to roll out these support measures for more labour-intensive sectors like leather and footwear, DPIIT secretary Rajesh Kumar Singh said.
Thakur said about ₹350 crore had been disbursed under the Indian Footwear and Leather Development Programme (IFLDP) out of the ₹1,700-crore allocation till fiscal 2025-26, a news agency reported.
IFLDP is being implemented with six sub-schemes: Integrated Development of Leather Sector (IDLS), Sustainable Technology and Environmental Promotion (STEP), Establishment of Institutional Facilities (EIF), Mega Leather Footwear and Accessories Cluster Development (MLFAC), Brand Promotion and Development of Design Studios.
Six proposals from Bihar, Madhya Pradesh, Uttar Pradesh, Maharashtra, Tamil Nadu, and Manipur have been received under MLFAC. The proposals are scrutinised by the National Productivity Council and are likely to be considered soon, Singh added.
ALCHEMPro News Desk (DS)
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