Focused initiative enthuses Bahadurgarh footwear body

The Bahadurgarh Footwear Park Association has welcomed the "Focused Product Scheme" proposed by Finance Minister Nirmala Sitharaman, stating that it will help in enhancing the productivity, quality, and competitiveness of India’s footwear and leather sector.

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“This initiative will support component manufacturing and machinery manufacturers for both non-leather and leather footwear, creating employment for 22 lakh people and generating over Rs 400 crore in revenue. It will also boost exports, strengthen the sector’s value chain, promote innovation, and boost India’s position in the global market,” Narendra Chhikara, senior vice-president of the association, said.

He said Bahadurgarh was home to the nation’s largest non-leather footwear park, where nearly one crore pairs of footwear were produced daily. The park was linked to over 2,500 units in the footwear manufacturing industry.

Asked about the demand for a reduction in the GST rate from 12% to 5% on footwear priced below Rs 1,000, he said the Finance Minister had stated that the GST-related issues would be reviewed by the GST Council. Therefore, the association would now be presenting the matter to the council.

“The GST rate was increased from 5% to 12% in January 2022, which led to a 25% drop in footwear sales in the region, as 90% of non-leather footwear products are priced below Rs 1,000. Hence, we are demanding the restoration of the previous GST rate,” he said.

Subhash Jagga, general secretary of the association, expressed optimism about the proposed scheme, stating that it would not only provide substantial subsidies for machinery used in the footwear industry but also generate additional employment.