March 6, 2002

'16'

EXPORT OF INDIAN LEATHER AND LEATHER PRODUCTS CROSS TARGET

    The total export of leather and leather goods from India reached US $ 1970.99 million (US $ 1.9 billion) during 2000-2001, thereby exceeding the target of US $ 1760 million set for the year. Exports of leather and leather goods from India were valued at US $ 1777 million and US $ 1724 million in 1998-99 and 1999-2000 respectively.

    Government has taken various policy initiatives for export promotion of leather and leather products. These include implementing export promotion scheme like Duty Entitlement Pass Book Scheme and Duty Drawback Schemes; Tannery Modernisation Scheme; de-reservation of tanning and footwear sector from small scale industry; providing financial assistance to exporters through Marketing Development Assistance and Marketing Access Initiatives Schemes for marketing of export products outside the country; and assisting in design and product development through Institutes like Footwear Design and Development Institute and Central Leather Research Institute.

    The response received from the leather industry to the Tannery Modernisation Scheme (TMS) launched in January 2000 has been quite encouraging. Extension of the scope of the Scheme is subject to allocation of sufficient funds in the Tenth Five Year Plan. Till now, 144 applications have been received out of which 93 proposals covering 86 tanneries have been sanctioned a financial assistance of Rs.9.44 crore. Modernisation process in respect of 60 proposals covering 53 tanneries has already been completed and the corresponding assistance of Rs.6.81 crore disbursed to them. Applications of 37 tanneries received recently are under process. Representations have been received from some quarters regarding the parameters of the Scheme. Required steps to bridge the critical gaps in infrastructure for integrated development of leather industry are also being taken under the Indian Leather Development Programme (ILDP) and UNDP-assisted Small Industries Development & Employment Programme in the Leather Sector (SIDE-NLDP).