FDI foreign direct investment had profited India so much by investing in India as India companies had less investment and high profit and there are so much profitable business ideas in India. These are some good points that why invest in India’s leather industry.
Indian leather segment remains at USD 17.85 billion
(Fares – USD 5.85 billion, Domestic Market – USD 12 billion).India records for 12.93% of the world’s leather generation of conceals/skins. High Growth anticipated in the following five years. Indian cowhide industry has one of the most youthful workforce with 55% of workforce underneath 35 years of age. India is the second biggest maker of footwear and leather articles of clothing in the world.
REASONS TO INVEST
Opportunity to set-up send out units: Exports are anticipated achieve USD 9.0 billion by 2020, from display level of USD 5.85 billion. India has exchange concurrences with Japan, Korea, ASEAN, Chile and so forth., and is arranging Free Trade Agreement with European Union, Australia etc. Opportunity to tap colossal household advertise in India-: The local market is required to twofold in the following five years from introduce level and achieve USD 18 billion by 2020.Comparative preferences in cost of generation and work costs when contrasted with other significant assembling countries. Skilled/prepared labour accessible for another creation unit or existing creation unit.
Strong Raw Material Base:
A solid base for leather materials – India is supplied with 20% of the world’s cows and bison and 11% of the world’s goat and sheep population. India produces 2.5 billion sq. feet of leather, representing around 13% of worldwide production. The Indian Leather Industry involves significant portions to be specific Footwear, Finished Leather, Leather Goods, Leather Garments, Footwear Components and Saddlery and Harness. Every one of these fragments have high development potential. Per capita utilization of footwear in India anticipated to increment up to 4 sets and aggregate local utilization is relied upon to reach up to 5 billion sets by 2020.Great chance to set-up assembling office of footwear parts, thinking about expanding interest for form footwear in India.
High development potential on sends out, the prepared accessibility of cowhide, the wealth of fundamental leather materials and quick walks in the regions of limit modernisation and extension, ability improvement and condition administration, combined with a positive speculation atmosphere has made the Indian leather industry an ideal venture goal.
Youth Power: With 55% of the workforce underneath the age of 35, the Indian cowhide industry has one of the most youthful and most beneficial workforces.
Great government arrangements for advancement of calfskin division.
Expanding residential market for Fashion Accessories like Hand Bags, Wallets, Purses and so forth.
The whole leather item area is de-authorized, encouraging extension on present day lines with best in class apparatus and equipment.100% Foreign Direct Investment is allowed through the programmed route.
The Integrated Development of Leather Sector (IDLS) sub-conspire executed as a major aspect of the ILDP has essentially added to limit modernisation and innovative up-degree of the cowhide sector. No Central Excise obligation and import obligation on crude stows away and skins, semi-prepared cowhides like wet blue, covering calfskin or completed leather. Capital merchandise (hardware) required by the business can be transported in without import obligation under the Export Promotion Capital Goods (EPCG) Scheme of Foreign Trade Policy, subject to meeting the fare commitment of six times the obligation spared in six years.
Budgetary SUPPORT Under the IDLS sub-plan of ILDP, 30% concede is given on the cost of plant and hardware for Micro and Small units and 20% for different units, with a roof of USD 0.307 million for every item line. Under the MLC sub-plan of ILDP, half give with a roof of USD 19.23 million in light of size is accommodated the foundation of Mega Leather Clusters to help framework office and bolster administrations for creation and export. Under the Leather Technology, Innovative and Environmental Issues sub-plan of ILDP, help is accommodated up to half of the undertaking cost with a roof of USD 7.69 million for up gradation/establishment of Common Effluent Treatment Plants (CETPs) to address ecological contamination caused by cowhide units.
The National Manufacturing Policy recognizes leather as a unique concentration part, for development and work generation. Huge Production Centres as Mega Leather Clusters (MLC) with all required foundation for creation to be set-up in next 5 years. These incorporate the accompanying activities. Financial specialists can set-up their units in one of these MLCs.