The Indian government offers various financial support mechanisms to leather exporters, aiming to boost their competitiveness in the global market. Some key initiatives include:
- Merchandise Exports from India Scheme (MEIS): This scheme provides exporters with duty credit scrips that can be used to offset import duties on specified inputs. Leather and leather products are included in the list of eligible products under MEIS.
- Focus Product Scheme (FPS) and Focus Market Scheme (FMS): These schemes provide financial assistance for market development and brand promotion activities in specific markets and for selected product categories, including leather products.
- Market Access Initiative (MAI) Scheme: This scheme provides financial assistance for activities related to market access, such as participation in trade fairs and exhibitions, market research, and buyer-seller meets.
- Interest Subvention Scheme: This scheme provides interest subvention on pre- and post-shipment export credit, reducing the cost of borrowing for exporters.
- Duty Drawback Scheme: This scheme allows exporters to claim a refund of duties paid on imported inputs used in the manufacture of export products.
These schemes provide significant financial support to leather exporters, helping them to overcome challenges such as high input costs, competition from other countries, and market access barriers. By reducing their financial burden and promoting their products in international markets, these schemes contribute to the growth and development of the Indian leather export sector.
