Indian industry has huge potential to surpass China in footwear production by 2020, Union Minister Santosh Gangwar said. The government has recognised footwear as a priority sector and introduced favourable policy reforms along with the GST, the Minister of State for Finance said at the inauguration of the third edition of the India International Footwear Fair 2017 here. With 95 per cent of the domestic footwear production, India is the second largest global producer of footwear after China. The minister also assured the footwear industry of all possible support over its demand to reconsider GST slabs pertaining to the sector. The footwear sector has been categorised into two slabs. Footwear priced below Rs 500 will be taxed at 5 per cent while the others would attract 18 per cent levy under the GST.
According to the Confederation of Indian Footwear Industries, the dual tax slab rates on footwear would have a detrimental impact on the overall sector as the footwear priced between Rs 500 and Rs 1000 will be taxed more. Stressing upon the need to keep strict quality control, Gangwar asked the industry to raise its export bar which has only 45 per cent share in India’s total leather exports.
Speaking on the occasion, India Trade Promotion Organisation CMD LC Goyal said it is poised to touch new horizons by setting up a world class integrated-exhibition- cum-convention-centre at Pragati Maidan. He said that all clearances from different authorities have been received for the project and as ITPO is concerned about the environmental aspect, around 5000 trees would be planted inside Pragati Maidan during the project.
Source: Financial Express
