India announces incentives under Rs 3.25b package for leather, textile exports
Monday, 2 March 2009
NEW DELHI, Mar 1 (PTI): India yesterday announced that incentives under a Rs 3.25 billion (325-crore) package for leather and textile exports would be available only on shipments to the US and Europe and was limited to six months from April 1.
The government announced the multi-crore package Thursday to support exporters hit by demand slump in the US and Europe, pending a decision on who would benefit from it.
"In pursuance of this announcement, it was decided... to grant benefits under Market Linked Focus Product Scheme at a special rate of two per cent on... value of exports of all leather products and apparels," Commerce Minister Kamal Nath said today.
He said: "This incentive will be available to exports of products to European Union and the USA only. This special benefit is for a limited period of six months." The benefits would accrue on exports made from April 1, this year.
The US and Europe account for 80 per cent of India's leather exports valued at USD 3.5 billion. This year the growth is likely to be flat, Leather Export Promotion Council Chairman Habib Hussain said.
Sixty per cent of the apparels exported from India go to the US and EU, earning USD 9.7 billion in 2007-08. Sales in April- November period of this fiscal was USD 6.1 billion.
Estimates suggest that the garment industry employs seven million people, including 3.9 million in export sector.
There are 2.5 million people employed in the leather industry, according to industry estimates.
The government announced the multi-crore package Thursday to support exporters hit by demand slump in the US and Europe, pending a decision on who would benefit from it.
"In pursuance of this announcement, it was decided... to grant benefits under Market Linked Focus Product Scheme at a special rate of two per cent on... value of exports of all leather products and apparels," Commerce Minister Kamal Nath said today.
He said: "This incentive will be available to exports of products to European Union and the USA only. This special benefit is for a limited period of six months." The benefits would accrue on exports made from April 1, this year.
The US and Europe account for 80 per cent of India's leather exports valued at USD 3.5 billion. This year the growth is likely to be flat, Leather Export Promotion Council Chairman Habib Hussain said.
Sixty per cent of the apparels exported from India go to the US and EU, earning USD 9.7 billion in 2007-08. Sales in April- November period of this fiscal was USD 6.1 billion.
Estimates suggest that the garment industry employs seven million people, including 3.9 million in export sector.
There are 2.5 million people employed in the leather industry, according to industry estimates.