Exporters requested PLI for leather sector
Council for Leather Exports (CLE) has urged Indian government to extend benefits under Production Linked incentive (PLI) scheme to leather sector. The move will help in creating jobs, increasing exports and boosting manufacturing. Till now, Indian government has introduced PLI schemes for 13 sectors including auto, steel, pharmaceuticals, telecommunications and textiles.
“I would request that the scheme may kindly be extended to the leather, leather products and footwear sector,” said Sanjay Leekha, CLE Chairman, in a letter to Nirmala Sitahraman, India’s Finance Minister. He has further urged with government to extend the emergency credit line guarantee scheme (ECLGS 2.0) to the sector. This would help in expanding capacities and in recovery of the sector from Covid-19 disruptions.
Currently, only ECLGS 1.0 is applicable for the Micro Small Medium Enterprises (MSME) units in leather, leather products and footwear sector. Leekha said, “As our sector suffered immense export losses due to covid, there is a need to provide additional credit at lower interest rates.” He further said that the council is expected to achieve US$ 5.89 billion as export target during current fiscal year.