The measures announced by the government to push economic growth will help attract investments and boost exports of leather sector, CLE said on Sunday.
Council for Leather Exports (CLE) Chairman P R Aqeel Ahmed said the stimulus measures have come at the right time, as leather, leather products and footwear industry is currently facing challenges in the global market.
Exports from the sector have declined by 4.90 per cent during AprilJune 2019, primarily due to reduction in exports to Europe, which is the major market, accounting for about 53 per cent of exports.
He said the announcement to amend definition of MSMEs will further increase their concentration in leather and footwear industry and will facilitate more companies to avail government support measures.
“The move to clear pending GST refunds to MSME within 30 days, timely passing on rate-cuts by banks and additional credit expansion through Public Sector Banks, will immensely help in overcoming the liquidity problems,” he added.
The measures will help in promoting production, exports and investments in the leather, leather products and footwear industry, he said.
Further, Ahmed said that considering the opportunities presented by US China trade issues, domestic industry is looking to register overall export growth of 5 per cent this financial year.
The leather and footwear industry is aiming at huge expansion through attracting investments and have planned investment promotion events abroad this year.