Locally made leather footwear to cost less

After the FM announced cut in excise duty on leather shoes priced over 1,000 from 12 to 6 percent, the footwear industry players are happy. The decision has been also welcomed by the footwear industry of Agra since it will reduce production costs, while letting them improve quality. Experts believe the decision could also lead to a reduction in leather footwear prices.

Reacting to the Budget recommendation, Puran Dawar, President, Agra Footwear Manufacturers and Exporters Chamber (AFMEC) said, the decision will further boost production shoes in the country and improve quality. Moreover, many new manufacturers will come forward and avail the benefit of lowering of taxes.

Agra is one of the largest footwear manufacturing hubs in India, contributing around 65 percent of the total domestic consumption and having a 28 percent share of the total footwear exports from India. In domestic units, manufacturers use 100 percent of indigenous leather and other inputs. Around two lakh pairs of footwear are estimated to be manufactured in one single day in Agra, while the production capacity is much more than the number. Reduction in duty can now boost production.

While the footwear and component industry of Agra is on the growth track, according to Council for Leather Exports (CLE), there are only 60 units which are fully mechanized and 150 others are in the semi- mechanized stage with the state-of-the-art manufacturing facility, using the latest technology and world-class raw materials. Several leading global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike, Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan are mostly manufactured or sourced from Agra units.