Delhi International Leather Expo 2025

The Delhi International Leather Expo (DILEX) 2025 is event scheduled for 20-21 February 2025 at Yashobhoomi, ICC Dwarka, New Delhi. This expo serves as a premier platform for manufacturers and exporters in the leather industry. It aims to connect them with international buyers seeking new sourcing opportunities. DILEX aligns with the government’s Make in India and Atmanirbhar Bharat initiatives. This event is expected to enhance exports, create jobs, and strengthen India’s position in global markets.

Government Support and Reforms

The Government of India has introduced several reforms to boost the leather sector. The Basic Customs Duty (BCD) on wet blue leather has been slashed from 10% to zero. This change took effect on 2 February 2025. Additionally, the export duty on crust leather has been removed. These measures respond to industry demands and support growth.

Special Packages for Growth

A Special Package has been created to support manufacturing and exports, especially in the footwear sector. The Focus Product Scheme aims to enhance productivity and quality. The leather industry is targeting a turnover of ₹4 lakh crore and exports of ₹1.1 lakh crore. This initiative is projected to generate approximately 22 lakh jobs.

Support for MSMEs

To boost Micro, Small, and Medium Enterprises (MSMEs), the government has raised investment and turnover limits. Credit guarantee coverage for micro and small enterprises has been doubled to ₹10 crore. This change is expected to unlock an additional ₹1.5 lakh crore in credit over the next five years. Customised financial assistance will also be available for micro-enterprises and SC/ST women entrepreneurs.

Export Promotion Mission and Trade Facilitation

An Export Promotion Mission will be launched with specific sectoral and ministerial targets. This mission aims to enhance the overall export capability of the leather sector. BharatTradeNet (BTN) will be established as a unified platform for trade documentation and financing. This platform will streamline international trade processes.

Industry Goals and Future Outlook

The Council for Leather Exports (CLE) has set a target of USD 47 billion for the leather sector by 2030. Out of this, USD 13.7 billion is aimed at the export sector. The proactive government stance, particularly in duty reductions and financial support for MSMEs, is seen as crucial for elevating India’s leather sector to global prominence. Industry leaders express optimism about sustainable growth and competitiveness in the global market.

Questions for UPSC:

1. Critically discuss the impact of the Make in India initiative on the Indian manufacturing sector.
2. Examine the role of MSMEs in the economic development of India and their challenges.
3. Analyse the significance of export promotion missions for enhancing India’s trade relations.
4. Point out the key reforms introduced in the Union Budget 2025 and their implications for the leather industry.

Answer Hints:

1. Critically discuss the impact of the Make in India initiative on the Indian manufacturing sector.

1. Make in India aims to increase manufacturing’s contribution to GDP from 16% to 25% by 2025.
2. It encourages foreign direct investment (FDI) by easing regulations and providing incentives.
3. The initiative has led to job creation, with millions of new jobs expected in various sectors.
4. It encourages innovation and skill development through collaborations with global firms.
5. Challenges include infrastructure deficits and regulatory hurdles that still need addressing.

2. Examine the role of MSMEs in the economic development of India and their challenges.

1. MSMEs contribute to employment, generating around 110 million jobs in India.
2. They account for about 30% of India’s GDP and 45% of total manufacturing output.
3. Access to finance remains a major challenge, with many MSMEs struggling for credit.
4. Regulatory compliance and market access issues hinder their growth potential.
5. Government initiatives like credit guarantees aim to support and uplift MSMEs.

3. Analyse the significance of export promotion missions for enhancing India’s trade relations.

1. Export promotion missions help identify new markets and opportunities for Indian products.
2. They facilitate direct engagement with international buyers and stakeholders.
3. Such missions enhance visibility of Indian brands and products on global platforms.
4. They support the government’s goal of increasing exports, contributing to economic growth.
5. Challenges include competition with established global players and trade barriers.

4. Point out the key reforms introduced in the Union Budget 2025 and their implications for the leather industry.

1. Reduction of Basic Customs Duty on wet blue leather from 10% to zero boosts competitiveness.
2. Elimination of export duty on crust leather encourages higher export volumes.
3. A Special Package aims to enhance manufacturing and create jobs in the leather sector.
4. Increased credit guarantee coverage for MSMEs supports financial stability and growth.
5. Overall, these reforms position India as a global manufacturing hub for leather products.