30% drop in sale at Bahadurgarh footwear industry in past 3 years

Bahadurgarh: There are nearly 2500 units, most of these registered with Ministry of Micro, Small, Medium Enterprises (MSME, producing nearly 80 lakh pairs non-leather footwears daily, having annual turnover about Rs 50,000 crore, which witnessed nearly 30% drop in the sale in past about three years. This industry is providing employment to nearly three lakh persons, Subhash Jagga President of Bahadurgarh Chamber of Commerce & Industry said that earlier nearly 80% non-leather shoes were being imported in the country from China, but now the manufacturers of Bahadurgarh Footwear Park exporting shoes to several other countries having annual export of value worth Rs 3500 crore.

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Jagga said, domestic sale as well as export of non-leather footwears can further increased up to Rs 10,000 crore in case this industry is provided relief by the government by reducing GST on low cost non-leather footwears from 12% to 5%  as charged earlier on non-leather footwears of cost less than Rs 1000 each pair, and was enhanced by the government which adversely affected the sale, besides increase in drawback duty on exports of non-leather shoes from 1.5% to 12%, similar to the exports available in China.

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According to Narender Chhikkara, Senior President of  Bahadurgarh Footwear Industry, in case Haryana state government provides land on lease basis on subsidized rates as in case of Andhra Pradesh and Tamilnadu states the number of footwear manufacturing units in Bahadurgarh may further increase by 1000 units providing employment opportunities to nearly three lakh persons. He said, few days ago the entrepreneurs of Bahadurgarh Footwear industry had made an appeal to the Nirmala Sitaraman, Union Finance Minister demanding reduction in GST on non-leather footwears from 12% to 5% as in the past, to bring boom in domestic sale as well as exports, and also provide land at subsidized rates to small scale manufacturers to set up new units.   

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