The Council of Leather Exports has welcomed de-reservation of leather products from the SSI list. It would help achieve economies of scale, facilitate setting up and growth of modern production units, it said.
It would also facilitate the foreign direct investment in the industry, the council said. This combined with tax-free dividend in the hands of investors would pave the way for investment in the sector, it added.
But the council criticised Union finance minister Jaswant Singh for not providing any relief to the industry which would have helped it in combating the price competitiveness in the international market.
Singh should have reduced duty on items, like machinery parts, inputs like synthetic lining materials and fusible interlining.
