Special Package for Leather and footwear sector
Cabinet approves special package for employment generation in leather and footwear sector
The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the special package for employment generation in leather and footwear sector. The package involves implementation of Central Sector Scheme "Indian Footwear, Leather & Accessories Development Programme" with an approved expenditure of Rs. 2600 Crore over the three financial years from 2017-18 to 2019-20.
Major Impact:
The scheme would lead to development of infrastructure for the leather sector, address environment concerns specific to the leather sector, facilitate additional investments, employment generation and increase in production. Enhanced Tax incentive would attract large scale investments in the sector and reform in labour law in view of seasonal nature of the sector will support economies of scale.
The Special Package has the potential to generate 3.24 lakhs new jobs in 3 years and assist in formalization of 2 lakh jobs as cumulative impact in Footwear, Leather & Accessories Sector.
Details of the Indian Footwear, Leather & Accessories Development Programme
The special package also includes measures for simplification of labour laws and incentives for employment generation, as under:
Major Impact:
The scheme would lead to development of infrastructure for the leather sector, address environment concerns specific to the leather sector, facilitate additional investments, employment generation and increase in production. Enhanced Tax incentive would attract large scale investments in the sector and reform in labour law in view of seasonal nature of the sector will support economies of scale.
The Special Package has the potential to generate 3.24 lakhs new jobs in 3 years and assist in formalization of 2 lakh jobs as cumulative impact in Footwear, Leather & Accessories Sector.
Details of the Indian Footwear, Leather & Accessories Development Programme
- Human Resource Development (HRD) sub-scheme: HRD sub-scheme proposes to provide assistance for Placement Linked Skill Development training to unemployed persons @ Rs. 15,000 per person, for skill up-gradation training to employed workers @ Rs. 5,000 per employee and for training of trainers @ Rs. 2 lakh per person. The placement of 75% of trained persons is proposed to be mandatory for availing assistance related to skill development training component. The proposal under this sub-scheme is to train/skill 4.32 lakh unemployed persons, upgrade the skills of 75,000 existing employees and train 150 master trainers during the three years with proposed outlay of Rs. 696 crore.
- Integrated Development of Leather Sector (IDLS) sub-scheme: IDLS sub-scheme proposes to incentivize investment and manufacturing including job creation by providing backend investment grant/subsidy @ 30% of the cost of new Plant and Machinery to Micro, Small & Medium Enterprises (MSMEs) and @ 20% of the cost of Plant and Machinery to other units for Modernization /technology upgradation in existing units and also for setting up of new units. The proposal under this sub-scheme is to incentivize 1000 units in Leather, Footwear and Accessories & Components sector during the three years with proposed outlay of Rs.425 crore.
- Establishment of Institutional Facilities sub-scheme: The sub-scheme proposes to provide assistance to Footwear Design & Development Institute (FDDI) for upgradation of some of the existing campuses of FDDI into "Centres of Excellence" and establishing 3 new fully equipped skill centres alongside the upcoming Mega Leather Clusters, based on project proposals, with proposed outlay of Rs.147 crore for the three years.
- Mega Leather, Footwear and Accessories Cluster (MLFAC) sub-scheme:The MLFAC sub-scheme aims at providing infrastructure support to the Leather, Footwear and Accessories Sector by establishment of Mega Leather, Footwear and Accessories Cluster. Graded assistance is proposed to be provided upto 50% of the eligible project cost, excluding cost of land with maximum Government assistance being limited to Rs. 125 crore. The outlay of Rs 360 crore has been proposed to support 3-4 new MLFACs, for the three years.
- Leather Technology, Innovation and Environmental Issues sub-scheme: Under this sub-scheme, assistance is proposed to be provided for upgradation/installation of Common Effluent Treatment Plants (CETPs) @ 70% of the project cost. The sub-scheme will also provide support to national level sectoral industry council/ association and support for preparation of vision document for Leather Footwear and Accessories Sector. The proposed outlay for this sub-scheme is Rs. 782 crore for the three years.
- Promotion of Indian Brands in Leather, Footwear and Accessories Sector sub-scheme: Under this sub-scheme, the eligible units approved for Brand Promotion are proposed to be assisted. The Government assistance is proposed to be 50% of total project cost subject to a limit of Rs.3 crore for each brand, each year for 3 years. The proposal under this sub-scheme is to promote 10 Indian brands in the international market in three years with proposed outlay of Rs. 90 crore.
- Additional Employment Incentive for Leather, Footwear and Accessories Sector sub-scheme: Under this scheme, it is proposed to provide the employers' contribution of 3.67% to Employees' Provident Fund for all new employees in Leather, Footwear and Accessories sector, enrolling in EPFO for first 3 years of their employment. The sub-scheme would be applicable to employees with salary upto Rs.15,000/-. The proposed outlay is Rs. 100 crore to assist in formalization of approximately 2,00,000 jobs in the sectors.
The special package also includes measures for simplification of labour laws and incentives for employment generation, as under:
- Enhancing Scope of Section 80JJAA of Income Tax Act: For providing deduction to Indian Company engaged in manufacture of goods in a factory towards additional wages paid for three years to new workman, the provisions of minimum 240 days employment in a year to a workman under Section 80JJAA of Income Tax Act would be further relaxed to 150 days for Footwear, Leather & Accessories Sector considering the seasonal nature of this sector.
- Introduction of fixed term employment: In order to attract large scale investments at global scale, the regulatory framework for labour related issues is proposed to be addressed by introduction of Fixed Term Employment under Sub Section (1) of section 15 of Industrial Employment (Standing Order) Act, 1946 looking at the seasonal nature of Leather, Footwear and Accessories industry.
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India’s Foreign Trade: November 2017
I. MERCHANDISE TRADE
EXPORTS (including re-exports)
Exports during November 2017 have exhibited high positive growth of 30.55 per cent in dollar terms. vis-Ã -vis November 2016. This is on the pattern of positive growth in exports in last thirteen months with a dip of 1.12 per cent in October 2017 vis-Ã -vis same period last year.
Exports during November 2017 are valued at US $ 26195.76 million as compared to US $ 20066.26 million during November,2016. In Rupee terms, exports were valued at Rs. 169912.50 crore as compared to Rs. 135699.47 crore during November,2016, registering a rise of 25.21 per cent.
During November 2017, Major commodity groups of export showing positive growth over the corresponding month of last year are Engineering Goods (43.76%), Petroleum Products (47.68%), Gems & Jewellery (32.69%), Organic & Inorganic Chemicals (54.28%), and Drugs & Pharmaceuticals (13.39%).
Cumulative value of exports for the period April-November 2017-18 was US $ 196482.31 million (Rs 1267771.18 crore) as against US $ 175410.66 million (Rs 1174997.07crore) registering a positive growth of 12.01 per cent in Dollar terms and 7.90 per cent in Rupee terms over the same period last year.
Non-petroleum and Non Gems & Jewellery exports in November 2017 were valued at US $ 19247.56 million as against US $ 15104.42 million in November 2016, an increase of 27.43 %. Non-petroleum and Non Gems and Jewellery exports during April -November 2017-18 were valued at US $ 143528.58 million as compared to US $ 126660.74 million for the corresponding period in 2016-17, an increase of 13.32%.
IMPORTS
Imports during November 2017 were valued at US $ 40024.96 million (Rs 259612.29 crore) which was 19.61 per cent higher in Dollar terms and 14.73 per cent higher in Rupee terms over the level of imports valued at US $ 33461.87 million (Rs. 226288.21 crore) in November, 2016. Cumulative value of imports for the period April-November 2017-18 was US $ 296459.17 million (Rs. 1913047.30 crore) as against US $ 243296.85 million (Rs. 1630199.71 crore) registering a positive growth of 21.85 per cent in Dollar terms and 17.35 per cent in Rupee terms over the same period last year.
Major commodity groups of import showing high growth in November 2017 over the corresponding month of last year are Petroleum, Crude & products (39.14%), Electronic goods (24.97%), Pearls, precious & Semi-precious stones (85.80%), Machinery, electrical & non-electrical (23.24%) and Coal, Coke & Briquettes, etc. (51.80%).
CRUDE OIL AND NON-OIL IMPORTS:
Oil imports during November, 2017 were valued at US $ 9550.97 million which was 39.14 percent higher than oil imports valued at US $ 6864.25 million in November 2016. Oil imports during April-November, 2017-18 were valued at US $ 65802.97 million which was 22.65 per cent higher than the oil imports of US $ 53652.71 million in the corresponding period last year.
In this connection it is mentioned that the global Brent prices ($/bbl) have increased by 34.73 % in November 2017 vis-Ã -vis November 2016 as per World Bank commodity price data (The pink sheet).
Non-oil imports during November, 2017 were estimated at US $ 30473.99 million which was 14.57 per cent higher than non-oil imports of US $ 26597.62 million in November, 2016. Non-oil imports during April-November 2017-18 were valued at US $ 230656.20 million which was 21.63 per cent higher than the level of such imports valued at US $ 189644.14 million in April-November, 2016-17.
II. TRADE IN SERVICES (for October, 2017, as per the RBI Press Release dated 15th December 2017)
EXPORTS (Receipts)
Exports during October 2017 were valued at US $ 14,152 million (Rs. 92103.06 Crore) registering a positive growth of 3.06 per cent in dollar terms as compared to positive growth of 0.23 per cent during September 2017 (as per RBI’s Press Release for the respective months).
IMPORTS (Payments)
Imports during October 2017 were valued at US $ 8,700 million (Rs. 56620.73 Crore) registering a positive growth of 2.96 per cent in dollar terms as compared to negative growth of 2.40 per cent during September 2017 (as per RBI’s Press Release for the respective months).
III.TRADE BALANCE
MERCHANDISE: The trade deficit for November 2017 was estimated at US $ 13829.20 million as against the deficit of US $ 13395.61 million during November 2016.
SERVICES: As per RBI’s Press Release dated 15th December 2017), the trade balance in Services (i.e. net export of Services) for October, 2017 was estimated at US $ 5,452 million.
OVERALL TRADE BALANCE: Taking merchandise and services together, overall trade deficit for April-November 2017-18 is estimated at US $ 60927.86 million as compared to US $ 30095.19 million during April-November 2016-17. (Services data pertains to April-October 2017-18 as October 2017 is the latest data available as per RBI’s Press Release dated 15th December 2017)
…
MERCHANDISE TRADE
(PROVISIONAL)
| ||
NOVEMBER
|
APRIL-NOVEMBER
| |
EXPORTS(including re-exports)
| ||
2016-17
|
20066.26
|
175410.66
|
2017-18
|
26195.76
|
196482.31
|
%Growth 2017-18/ 2016-17
|
30.55
|
12.01
|
IMPORTS
| ||
2016-17
|
33461.87
|
243296.85
|
2017-18
|
40024.96
|
296459.17
|
%Growth 2017-18/ 2016-17
|
19.61
|
21.85
|
TRADE BALANCE
| ||
2016-17
|
-13395.61
|
-67886.19
|
2017-18
|
-13829.20
|
-99976.86
|
EXPORTS & IMPORTS: (Rs. Crore)
| ||
(PROVISIONAL)
| ||
NOVEMBER
|
APRIL-NOVEMBER
| |
EXPORTS(including re-exports)
| ||
2016-17
|
135699.47
|
1174997.07
|
2017-18
|
169912.50
|
1267771.18
|
%Growth 2017-18/ 2016-17
|
25.21
|
7.90
|
IMPORTS
| ||
2016-17
|
226288.21
|
1630199.71
|
2017-18
|
259612.29
|
1913047.30
|
%Growth 2017-18/ 2016-17
|
14.73
|
17.35
|
TRADE BALANCE
| ||
2016-17
|
-90588.73
|
-455202.65
|
2017-18
|
-89699.79
|
-645276.12
|
SERVICES TRADE
EXPORTS & IMPORTS (SERVICES) : (US $ Million)
| |
(Provisional)
|
October 2017
|
EXPORTS (Receipts)
|
14152
|
IMPORTS (Payments)
|
8700
|
TRADE BALANCE
|
5452
|
EXPORTS & IMPORTS (SERVICES): (Rs. Crore)
| |
(Provisional)
|
October 2017
|
EXPORTS (Receipts)
|
92103.06
|
IMPORTS (Payments)
|
56620.73
|
TRADE BALANCE
|
35482.32
|
Source: RBI Press Release dated 15th December,2017
| |
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Cabinet approves capital investment subsidy to industrial units located in North Eastern Region (including Sikkim)
The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has approved Capital Investment Subsidy amounting to Rs.264.67 crore to four industrial units located in North Eastern Region (NER) including Sikkim under Central Capital Investment Subsidy Scheme (CCISS), 2007 of North East Industrial Investment and Promotion Policy (NEIIPP), 2007.
The CCEA has also revised financial powers for approval of capital investment subsidy claims upto Rs.500 crore which will be now approved by the Minister of Commerce & Industry. This will facilitate expeditious settlement of claims.
The grant of subsidy to the industrial units will not only provide incentives to the operational units but also boost confidence of existing investors as well as potential investors in the states of NER.
The Government of India has been implementing this Scheme to promote industrialization in North Eastern Region.
The CCEA has also revised financial powers for approval of capital investment subsidy claims upto Rs.500 crore which will be now approved by the Minister of Commerce & Industry. This will facilitate expeditious settlement of claims.
The grant of subsidy to the industrial units will not only provide incentives to the operational units but also boost confidence of existing investors as well as potential investors in the states of NER.
The Government of India has been implementing this Scheme to promote industrialization in North Eastern Region.
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