February 13, 2002
'16'
INDIA, ITALY SIGN COLLABORATION AGREEMENTS FOR DEVELOPMENT OF LEATHER SECTOR
India and Italy have signed agreements which will enable the Indian industry to benefit from Italian technology and investments for the rapid development of the leather sector in India. MOUs to this effect were signed in the presence of the Union Minister of Commerce & Industry, Shri Murasoli Maran, at a Destination India Seminar in Milan today between leaders of the leather industry of Italy and the leading leather institutions of India. Stating that the Italian leather industries enjoyed good linkages with their Indian counterparts, Shri Maran noted the pride of place occupied by Italy in the global leather trade with a share of over 20 per cent and its global leadership in fashion leather and original brand manufacture. The Minister indicated that the 10th Five Year Plan Document on Leather Policy to be implemented from 2002-2007 would provide every support to the leather sector and facilitate development and infrastructure on a scale which could be compared with the best in the world. He further said that with foreign investment in mind, two projects for development of integrated tanneries were proposed on a pilot basis and that modernisation of tanneries was being expanded in scope through a massive increase in Government of India assistance.
Shri Maran also said that 100% foreign direct investment (FDI) through the automatic route was now allowed in India in tanning industries and leather footwear including components without the requirement of licence as the reservation of small scale industries in these segments had been removed. The Central Leather Research Institute (CLRI) of India enjoys a share of about 30 per cent of intellectual products like patents and copyrights generated in the leather sector during 1997-2001, it was indicated.
On investment opportunities in India, Shri Maran’s message to Italian business was four-fold i.e.: "(1) investing in India is safe…. With a stable government and one that is committed to economic reforms… (2) It is profitable to invest in India (as) India has a large and growing consumer market… (3) India offers limitless opportunities for investment…. (and) would welcome Italian investment particularly in transportation industry, food processing, metallurgical industries, electrical equipment, textiles and leather… and (4) Economic policies in India are evolving at a steady pace and are predictable and transparent. (Further), a flexible and investor-friendly approach forms the corner stone of our FDI policy. These are both dynamic and interactive and factor in investor perceptions adequately…. Therefore, I would emphasise that no investor can afford not to be in India".