The Minister of Commerce and Industry, Piyush Goyal, stated that the government is considering launching a new scheme to support domestic machinery manufacturing to produce embellishments, trimmings and other accessories as required by the industry at an event of Council for Leather Exports (CLE).
Piyush Goyal suggested the industry use the benefits of the Finance Ministry’s Manufacture and Other Operations in Customs Warehouse (MOOWR) scheme that allows the import of duty-free goods. Under this programme, an industry unit can import inputs and capital goods with no interest liability under the customs duty deferment. When exports of goods result from such operations, there is a complete remission of duties. There is no export obligation or investment threshold.
The Minister of Commerce and Industry suggested the sector explore new export destinations and focus on quality and innovation. He also stated that footwear and leather exports to the UAE rose by 64% in November. India implemented a trade pact with the UAE in May 2022.
The sector’s exports increased by 19% to USD 3.66 billion in April-November 2022-2023. The target for the financial year is USD 5.54 billion. The sector’s annual turnover is USD 17 billion (USD 5 billion in domestic sales and exports).
There is a significant potential to boost exports. Innovation is the key to making global exports. In 2021-22, exports of services and goods reached an all-time high of USD 676 billion. The country’s exports during the current financial year would register a high growth rate in goods and services compared to 2021-22.
For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@cleartax.in
I am an Advocate by profession. I interpret laws and put them in simple words. I love to explore and try new things in life.
