Bags / Shoes & Accessories

In early May, with the announcement of shoe giants Pou Chen Corporation and Hongfu settling down in India, the government of Tamil Nadu was making big bets on the non leather footwear industry. And another shoe giant, Nike's main OEM shoe manufacturer, Fengtai, established a factory in India a few years ago, according to Huacheng's import and export data observation report.

And India, with the entry of these shoe giants, has significantly accelerated its pace. We are currently preparing to impose strict restrictions on footwear products imported from China.

At the same time, reduce the tax rate of India's footwear industry and impose tariffs on foreign raw materials.

Reduce local shoe industry tax rates

According to Huacheng Import and Export Data Observation, recently, the Indian government is preparing to promote the country's domestic shoe industry. According to the government's intentions, the domestic shoe industry in India can be greatly alleviated.

Renowned media have learned from exclusive sources that the footwear industry may receive tax exemptions. According to sources, the government can lower the tax rate on goods and services for this purpose. DPIT proposes to reduce the commodity and service tax rates in the domestic footwear industry.

According to sources, DPIT has submitted a proposal to the Ministry of Finance regarding this matter. In addition, strict measures can also be taken to prohibit the import of cheap products from other countries, as reported by Huacheng Import and Export Data Observation.

Impose a 10% tariff on materials from external sources, and Chinese imported shoes may be subject to strict restrictions

Alok Priyadarshi, a well-known media source, cited sources to provide more details about the news, stating that the government hopes to support the domestic shoe industry. It can be seen that the government attaches great importance to providing raw materials for footwear. The focus will be on providing domestic components and accessories for footwear.

Alok further stated that the government can provide tax breaks for the footwear industry. Therefore, DPIT has proposed a proposal to reduce the GST tax rate. DPIT has sent its proposal to the Ministry of Finance. According to Huacheng Import and Export Data Observation, a 12% consumption tax is currently imposed on footwear priced below 1000. Among them, it is recommended to impose a maximum import tariff of 10% on raw materials.

In addition, in order to improve the domestic footwear industry, a minimum import price may be imposed on imported footwear products.

Alok Privadarshi quoted sources as saying that cheap footwear imported from China may also be subject to strict restrictions. At the same time, the government is also considering introducing the PLI plan into the footwear industry.

Local gambling! To build 20 large shoe factories

Meanwhile, India's goal is to establish large manufacturing units in 20 locations within 3 years, especially in rural areas.

Our goal is to have 20 such units in the entire state by 2025. We are in talks with several shoe manufacturers in Taiwan and some Korean shoe manufacturers. Negotiations with several Taiwanese companies are in the later stages, and we hope to complete the transaction as soon as possible, "a senior government official who declined to disclose the company's name told DH.

The government believes that labor-intensive industries will provide employment opportunities for at least 15000 to 20000 people, especially women, in each region, which will further promote rural economic development, according to Huacheng Import and Export Data Observation.