info@indiafashionicon.com
Publisher
इस खबर को सुनने के लिये प्ले बटन को दबाएं।
In the Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman, the Indian government unveiled a series of measures aimed at strengthening the country’s footwear and leather export industry, recognising its importance as a labour‑intensive export segment and its contribution to employment and foreign exchange earnings.
The government has expanded duty‑free import benefits for inputs used in manufacturing export‑oriented products. Previously, only finished leather and synthetic footwear units could import certain raw materials without duty; the new budget extends this facility to shoe uppers, a critical component in footwear production. This gives manufacturers better flexibility in sourcing components at competitive costs, which in turn enhances export competitiveness.
Another key change is the extension of the export obligation timeline for finished goods produced using duty‑free imports. Manufacturers of leather garments, footwear and related products will now have up to one year instead of six months to export their finished products, easing working‑capital pressures on exporters and reducing compliance risks.
Industry representatives welcomed these announcements as a long‑standing demand from exporters, particularly from clusters such as Agra and Kanpur, where leather and footwear production is a major economic driver and source of local employment. The widened import scope and extended timelines are expected to boost operational flexibility and lower costs for small and medium exporters.
Beyond the sector‑specific reforms, the budget also reflects a broader focus on labour‑intensive manufacturing sectors such as textiles, footwear, leather goods and allied industries, reinforcing their role in India’s export strategy and employment generation.
Economists say these measures should help Indian exporters navigate global trade challenges, including high tariffs in key markets like the United States, and position the sector for stronger participation in emerging global supply chains.
For more style updates & exclusive fashion stories follow indiafashionicon.com
DEeepika
