With the leather sector recognised as a Focus Sector under the Make In India scheme and with an ambitious target of $27 billion been set for the industry to be achieved by 2020, the industry has to capitalise on its strengths and significantly reduce the weaknesses to achieve the growth rather than relying on traditional growth models alone, said Rafeeq Ahmed, chairman, Council for Leather Exports.
Delivering his address at the inauguration of India International Leather Fair 2016, organised by Council for Leather Exports along with Indian Trade Promotion Organisation (ITPO) and others earlier this week, he said that the target growth would require quick action from various government departments and the industry on various aspects including enhancement of foreign investment into the sector, addressing the modernisation requirement of the tanning sector and trade and invsetmen agreement with the European Union, among other steps.
The tanning sector requires urgent support of the government for its modernisation, capacity expansion and environment management plans. The technology mission for tanning sector, proposed by the government with components namely Systemic and Larger collection of hides and skins, fuller utilisation of tannery capacity to augment finished leather, upgrade and expand capacities with latest technologies in all CETPs and developing framework for quality benchmarking and certification of products, needs to be implemented quickly to boost the raw material base of the country, he added.
He added that a country like Vietnam has been able to achieve an annual export value of about $14 billion on account of foreign investments, with foreign contribution of 77%. It is necessary to attract Foreign Investments and the CLE has conducted several road shows and expects to see some concrete projects from foreign investors takeing shape in coming months, particularly from China and Brazil.
He added that with the industry penetrating potential markets like Russia, Japan, Australia, Canada and UAE apart from US market, it is hoped that the government will soon conclude the Trade and Investment Agreement with European Union, which will provide zero duty access for both India and European manufacturers.
L C Goyal, chairman and managing director of ITPO, said that the country would require more state-of-the-art exhibition stalls to promote the exhibition and trade fair industry in the country and the organisation is working towards enabling the industry to conduct better exhibitions.