Regional Committee Meeting Hails Council for Leather Exports Chairman Shri Sanjay Leekha and Regional Chairman North Shri Motilal Sethi’s Proposal
Council for Leather Exports held its Northern Regional Committee Meeting on 21st June,2021 virtually. Shri Sanjay Leekha, Chairman and Shri Motilal Sethi, Regional Chairman – North presided over the meeting from the council’s Delhi office. Shri Motilal Sethi felicitated and welcomed Shri Sanjay Leekha, who has been recently appointed as the Chairman of the Council. He subsequently handed over his vision document for the northern region with reflections on the past year and the strategy ahead for its growth.
Presently, India is the second largest exporter of leather garments, second largest producer of Footwear, third largest exporter of Saddlery & Harness and 4th largest exporter of Leather Goods in the world. The export of footwear, leather and leather products from India was to the tune of US $ 3.68 billion (Rs.27,209 crores) during 2020-21, while in 2019-20 the sector recorded exports of US$ 5.07 BILLION (Rs.35,350 crores). In 2019-20, the northern region generated exports to the tune ofUS$ 1.10 billion (Rs. 8,200 crores). Northern region has vast scope for growth.
Highlights Of Vision Document
- PROFESSIONAL STUDY OF LEATHER INDUSTRY
- GLOBAL OUTREACH PROGRAM FOR MARKETING BRAND INDIA
- EFFECTIVE INFORMATION ON CLE WEBSITE
- CREATION OF 3 CLUSTERS/ COMMON FACILITY IN NCR
- TRANSACTION / LOGISTICS COST
Shri Motilal Sethi’s vision document proposes precise measures that must be taken by the council for promotion of leather industry. Based on the results achieved so far as well as on his vast experience, he suggests that a professional study of leather industry needs to be carried out by collecting inputs from industry and analyzing policies and working of competing countries to increase global share of leather industry. Collection of data and its analysis by engaging knowledge partners from big four consulting firms will create an analytical document, which will guide the industry and Govt to move forward with growth strategy as Indian leather Industry has vast scope and engages more than 10 million work force apart from earning huge foreign exchange. The Vision document also recommended that leather industry needs to carry out a Global outreach program by strengthening our marketing of ‘Brand India’ digitally in collaboration with India Brand Equity Foundation (IBEF), Digital India and Invest India schemes of the Government of India.
Vision document also suggested that northern region should create three clusters and common facilities in the NCR. Cluster development strategy is the best tool for improving productivity and competitiveness of enterprises. Providing effective information on market intelligence and national and international updated policies, through Cle website is another strong recommendation of the vision document apart from immediate intervention on transaction and logistic cost which is very high.
Chairman Cle Shri Sanjay Leekha while appreciating efforts of Sh. Motilal Sethi in creating this vision document, gave very motivating inspiration to the industry by asserting that India is a favorite destination today for leather and leather products and exports have started showing positive growth. He appealed to the industry to gear up as post covid, the global economies are going to bounce back, and India has a chance to equally bounce back and use this opportunity of pro India sentiments. He assured the members of all support from CLE and sought their continuous suggestions and initiatives to create synergies for the growth. Mr. Leekha emphasized on digital and virtual marketing and advised Industry to work in this direction very fast as due to restrictions on travels, Effective digital approach will go a long way in reaching out to global markets. He discussed a lot on marketing plans and export friendly policy intervention to achieve the desired targets.
Regional Committee Meeting which discussed for 2.5 hours at length all important issues and emphasized that Govt may consider withdrawing import duty on import of wet blue leathers as this will jeopardize the spirit of Atmanirbhar Bharat to produce world class leathers. Wet blue raw materials bring value addition of 100 percent. Industry felt that imposing duty on finished leather import still has some logic but imposing duty on wet blue, which is a raw material for value addition, is going to effect entire leather industry very badly. Members also emphasized that DFIS Scheme must continue to produce world class leather products. All other issues like review of export performance, pending MEIS, RODTEP, ECGLS, Refund of DRAWBACK and GST etc. were interacted in detail. Members also appealed Chairman Sh. Sanjay Leekha to represent the Govt for inclusion of Leather Sector, which is a champion sector, in the PRODUCTION LINKED INCENTIVE SCHEME.
