Indian government is working on relevant investments in tanning and footwear industry. As reported by local media, India is about to implement a massive investment, over 300 million euros, formerly planned, a few months ago, by the Ministry of Trade and Industry. Such financial measures also include some tax benefits, in the same way as they did last year for the textile industry, for which they also attended to review guidelines over job regulation and set reimbursement of state duties on export. Actually, Indian entrepreneurs from footwear and leather industry have been consistently calling for such tax amendment. In fact, throughout the year, the rate of duty reimbursement over import taxation has decreased from 7 till 2,6 per cent, thus possibly driving exporters to raise their goods prices. Nevertheless, increased prices might actually jeopardize sales, emphasizes the leather Export Council. Not to mention, on top of that, Bangladesh’s fierce competition: on the one hand, they do not pay customs duties on export towards Europe and Japan; on the other hand, labour is cheaper. Over the year, leather exports have slightly gone up (+2,4%) compared to last year, though in 2016 they had decreased by 3,2%. Importing orders from Europe and the UK slow down, as they are affected by Brexit; as for the USA, they keep up apparently.
India to invest 300 million euros in leather, while revising customs duty policy to protect export from Bangladeshi competition
