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India's CLE urges govt to extend PLI benefits to leather sector

Sep '21
Pic: Shutterstock
Pic: Shutterstock
India’s Council for Leather Exports (CLE) recently urged the government to extend the benefits of the production-linked incentive (PLI) scheme to the sector to help boost manufacturing, create jobs and raise exports. He also called for extending the emergency credit line guarantee scheme (ECLGS 2.0) to the sector to help enhance capacities and recover from the adverse impact of the pandemic.

At present, only ECLGS 1.0 is applicable for micro, small and medium enterprises (MSME) units in the leather, leather products and footwear sector.

The government’s PLI scheme with an outlay of ₹1.97 lakh crore was announced for 13 sectors, including textiles, automotive, steel, telecommunications and pharmaceuticals.

CLE chairman Sanjay Leekha, in a letter to finance minister Nirmala Sitahraman, said implementing the PLI scheme for the sector will be a major catalyst for achieving substantial growth and employment generation.

The objective of the PLI scheme is to make domestic manufacturing globally competitive and to create global champions in manufacturing. The strategy behind the scheme is to offer companies incentives on incremental sales from products manufactured in India, over the base year.

On exports, he said the council is sure to achieve the exports target of $5.89 billion during the current fiscal, a news agency reported. The council is looking at $10 billion exports in the sector by 2025.

Fibre2Fashion News Desk (DS)

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January 2022

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