India asks for funding of mega clusters

India

Published: 30 January, 2011

Following a pre-budget discussion between the new Chairman of the Indian Council for Leather Exports (CLE), Rafeeque Ahmed and the Indian Finance Minister, Pranab Mukherjee in New Delhi on January 11, the CLE called for a scheme to develop Mega Leather clusters throughout the country. The CLE have requested that the investment form part of the Indian Union budget for 2011-12.

As well as the development of national leather clusters, Ahmed also asked for a separate fund to intended to support the creation of Indian brands in the global market. From which, direct financial assistance would be given to individual companies for promoting their own brands in the order of 10% of their export turnover over a five year period.

Also, at the meeting, through Rafeeque Ahmed the CLE submitted a proposal to extend the 2% interest subvention scheme on rupee export credit for an extra year. This provides total exemption of service tax on post manufacturing services enhancing a duty free limit under India's Duty Free Import Scheme (DFIS) from 3% to 5%, implementing a 3% DFIS for the finished leather sector.

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