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Govt likely to unveil Rs 2,600 crore incentive package for leather industry
Jul-21-2017

With a view to boost manufacturing, exports and job creation in India, the government is likely to unveil Rs 2,600 crore incentive package for the labour intensive leather and footwear sector. The expenditure finance committee has already given its approval to the package and a draft cabinet note has been circulated to different ministries for their views.

The scheme, which includes both tax and non-tax benefits, was prepared on the lines of the package announced for the textiles sector in June last year. The commerce and industry ministry, which mooted the proposal, has sought tax incentives for the 'Indian Footwear, Leather, and Accessories Development Programme'. Besides, support has been sought to improve tax incentives for employment generation.

The sector assumes significance as it is a thrust segment under the ‘Make in India’ initiative.  According to industry, Rs 1 crore investment in the sector results in creation of jobs for about 250 people. Currently, about 30 lakh people are directly employed in the sector. The government aims to increase the sector exports to $15 billion by 2020 from the current $7 billion.

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