ian Union Finance Minister Nirmala Sitharaman proposed the imposition of a customs tariff equivalent to 10% of the value of the goods on wet blue, crust and finished hides of all kinds, including split ones. The measure seeks to strengthen the local leather industry.
A sector of the manufacturing and manufacturing industry sees it as a blow to the leather supply chain, which until now was tax-free when importing. The new tariff will surely be a stimulus for investment in India’s strong tannery sector, but in a period it would gravitate to some manufacturers of footwear and other leather goods and their exports, precisely because of the increase in the imported hides they use.
In reaction to the announcement, Harkirat Singh, CEO of Aero Club, a company operating in the footwear and clothing segment through the Woodland and Woods brand, told the press that “increased customs tariffs are in line with the intention of promoting local sourcing. However, this could lead to increased costs until we can find alternative sourcing centers, without compromising our quality standards. Despite this, we appreciate the intention of focusing on the local area,” the entrepreneur said.
Footwear Factory in India.
Harkirat Singh also welcomed the government’s commitment of 1.97 million Lakh rupees to the manufacturing sector in India to boost employment. “The government is making conscious efforts to promote domestic production in India,” he said.
Ishaan Sachdeva, director of the footwear brand Alberto Torresi, said: “The finance minister made many key changes to improve business standards and also make India self-sufficient. As for the industry, it was affected by the pandemic, but the exemption from taxes on the importation of leather has been withdrawn, leaving room for enormous opportunities in the near future. Exporters will now get incentives for their products and local leather will act as a major substitute for imported leather,” the entrepreneur said.
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Leather Insiders / Financial Express / Cuero America
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