In her Budget 2024-25, Finance Minister NirmalaSitharaman announced several measures to enhance the export competitiveness of the leather and textile sectors.
One of these proposed measures includes reducing the basic customs duty (BCD) on real down filling material from duck or goose and expanding the list of exempted goods for manufacturing leather and textile garments, footwear, and other leather articles for export.
To correct duty inversion, the government has reduced BCD on methylene diphenyldiisocyanate (MDI) for manufacturing spandex yarn from 7.5 per cent to 5 per cent, subject to conditions. Additionally, it has simplified the export duty structure on raw hides, skins, and leather.
Further, the government aims to introduce a centrally sponsored scheme aimed at skilling, in collaboration with state governments and industry. It also plans to upgrade 1,000 Industrial Training Institutes (ITIs) with a focus on outcome-oriented hub and spoke arrangements.
Another of the government’s objectives includes setting up of e-commerce export hubs through public-private-partnership (PPP) to help MSMEs and traditional artisans sell products internationally. These hubs will offer trade and export-related services under a seamless regulatory and logistic framework.
The government will also develop investment-ready ‘plug and play’ industrial parks with complete infrastructure in or near 100 cities, in partnership with states and the private sector, utilising town planning schemes. Twelve of these industrial parks will be sanctioned under the National Industrial Corridor Development Program.
Rental housing with dormitory-type accommodations for industrial workers will be facilitated in PPP mode with viability gap funding (VGF) support and commitments from anchor industries.
Finally, the government will simplify the rules and regulations for Foreign Direct Investment (FDI) and Overseas Investments to facilitate FDIs, prioritise certain sectors, and promote the use of the Indian Rupee for overseas investments.
