The government has implemented several reforms to boost trade and industry. The Basic Customs Duty (BCD) on wet blue leather has been reduced from 10 per cent to zero, effective February 2, 2025, addressing a key industry demand, while export duty on crust leather has been eliminated. Additionally, a special package has been introduced to support manufacturing and exports, particularly in the footwear sector, along with a focus product scheme aimed at improving productivity, quality, and competitiveness, generating a turnover of ₹4 lakh crore and exports of ₹1.1 lakh crore, and creating 22 lakh jobs.
To support MSMEs, investment and turnover classification limits have been increased, and credit guarantee coverage for micro and small enterprises has been doubled to ₹10 crore, unlocking an additional ₹1.5 lakh crore in credit over five years. Custom financial assistance, including customised credit cards for micro-enterprises and support for SC/ST women entrepreneurs, will further promote inclusive growth. An export promotion mission will also be launched with sectoral and ministerial targets, while BharatTradeNet (BTN), a unified platform for trade documentation and financing, will be established to streamline international trade, the Ministry of Commerce and Industry said in a press release.
"The government’s proactive stance in addressing industry concerns—particularly the duty reductions and financial support for MSMEs—will be instrumental in elevating India’s leather sector to global prominence. CLE remains committed to driving sustainable growth and global competitiveness,” said Rajendra K Jalan, chairman, CLE.
"The Union Budget 2025 has delivered a much-needed boost to the leather and footwear sector by enhancing credit access, rationalising duties, and maintaining key policy frameworks. The industry is poised for significant growth with the newly introduced special package and export-oriented incentives,” said Vimal Anand, joint secretary.
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