Budget 2025: Focus product scheme for leather sector to boost exports by Rs 1.1 lakh cr, says CLE

The Budget announcement for rolling out of a focused product scheme for footwear and leather sectors will help enhance productivity, competitiveness and exports by over Rs 1.1 lakh crore, CLE said on Sunday. The Council for Leather Exports (CLE) said the scheme will support design capacity, component manufacturing, and machinery required for the production of non-leather quality footwear.


"The scheme will support thrust areas like design capacity, component manufacturing, and machinery required for production of footwear and products," CLE Chairman Rajendra Kumar Jalan said, adding that the scheme is expected to facilitate employment for 22 lakh people, generate turnover of Rs Rs 4 lakh crore and exports of over Rs 1.1 lakh crore.


He added that it will also enhance production and productivity by attracting investments and will strengthen the component and machinery ecosystem of the sector.

CLE Executive Director R Selvam said the proposal to remove 20 per cent export duty on crust leather and 10 per cent import duty on wet blue leather will strengthen the tanning industry and will significantly promote exports of value-added products from the country.


The exports were USD 4.69 billion in 2023-24.

Leather exporter from Chennai, Rafeeque Ahmed, who is also chairman of the Farida Group, said the scheme was the need of the hour.

"Order books are slowly improving. This year, we expect the exports to touch USD 5.2 billion," Ahmed said.

Kanpur-based Growmore International Ltd MD Yadvendra Singh Sachan said the Budget announcements will help boost manufacturing and exports.