Budget 2020: leather industry has many expectations from the budget
Budget 2020: leather industry has many expectations from the budget
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The leather industry in Kanpur has been shaken for some time. The crisis of this industry has increased greatly due to increased expenses and the closure of ten days. This industry, which gives the maximum foreign exchange to the state, has been reduced to half. In such a situation, before the Budget 2020, the demand of entrepreneurs and exporters is that the government should make this industry a system of running smoothly at full capacity. The Kanpur leather industry's collapse has affected the livelihood of about 12 lakh people directly and indirectly. Apart from this, exporters here are being denied in the global market. The importers have started turning away from them due to not being able to supply on time. The economic package of Rs 2600 crore received from the central government a year ago has failed due to lack of industries. With this, the entrepreneurs say that they are in favor of making their own efforts to address the environmental concerns, but the government is requested to cooperate in the structural arrangements in this direction. Regarding Budget Expectations, the industry says that if it is freed from red tape, then Kanpur will take its place in the world.

Kanpur is special
In FY 2016-17, Uttar Pradesh exported a total of Rs 84282.89 crore. At the same time, the share of leather products in this was 12.47 per cent i.e. Rs 10508.50 crore. Of this, about 7,000 crore was owned by the leather industry of Kanpur.

Lost foreign exchange worth 4100 crores
In the FY 2017-18, the export of leather products from Kanpur region had reached the level of Rs 8500 crores. After this, a period of decline started. Exports declined to 6500 crores in 2018-19. Exports are down by 32% in the current financial year 2019-2020. Total exports are expected to be reduced to Rs 4400 crore by the end of the financial year.

Bengal is moving forward
The Uttar Pradesh government signed an investment agreement of Rs 1841 crore for setting up an industry in Kanpur, in which an investment of 200 crore did not land. In addition, the leather industry's investment of Rs 700 crore went to Bengal due to three times cheaper land, guarantee of running the industry and getting the infrastructure from the government.

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