Shares of three footwear makers rose 0.19% to 1.73% after the government hiked customs duty on imported footwear in the Union Budget 2020-21.
Mirza International (up 1.73%), Bata India (up 0.33%) and Relaxo Footwear (up 0.19%) advanced.
Presenting the Union Budget 2020, Finance Minister Nirmala Sitharaman said, "Labour intensive sectors in MSME are critical for employment generation. Cheap and low-quality imports are an impediment to their growth. Special attention has been taken to put measured restraint on import of those items which are being produced by our MSMEs with better quality. Keeping in view the need of this sector, customs duty is being raised on items like footwear and furniture."
Accordingly, the customs duty on footwear was hiked to 35% from 25%. The duty on parts of footwear was increased to 20% from 15% earlier.
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