CHENNAI: The U.S. and the European Union are planning to impose an anti-dumping duty on footwear imports from China and Vietnam, a move that could come as a big opportunity for the Indian leather footwear sector, Union Minister of State for Commerce Jairam Ramesh said here on Saturday.

Apart from improving the sector's competitiveness, the 15 to 20 per cent levy from mid-March was expected to generate interest among Korean and Taiwanese leather companies to set up a manufacturing base in India, he told presspersons. Earlier, Mr. Ramesh met Council of Leather Exports officials and visited the Madras Special Economic Zone (erstwhile MEPZ).

Neglected by governments

On his first official visit to Chennai after assuming charge, Mr. Ramesh said despite being one of the largest employment providers the leather industry had been neglected by successive governments. Its growth was necessary from economic and social points of view as most of the three million people employed by it were scheduled castes, tribes and other minorities. Further, women constituted 50 per cent of the workforce.

Underscoring the Centre's commitment to the leather industry's growth, Mr. Ramesh said increasing the exports from $ 2.5 billion to $ 7 billion in next five years was one of the objectives. This was prompted more by the intention to create one million additional jobs in the industry than merely the prospects of earning more foreign exchange. "Trade must benefit the weaker sections of the society," he said. But a number of issues were to be addressed, he said, pointing to the need for Tamil Nadu to expedite the process for the proposed footwear park in Sriperumbedur. Apart from giving all clearances, the Centre had declared the park, where several units would provide thousands of jobs, as a Special Economic Zone.

The Centre would look into the demand of the tanning sector in Tamil Nadu for financial assistance to install systems for complying with the zero liquid discharge (ZLD) norms that the State proposed to introduce for industrial units from June 2007. Mr. Ramesh said he suggested a formula under which three-fourths of the Rs.120 crore sought by the industry would be shared by the Centre and the State Government, while the industry would be required to contribute the remaining 25 per cent. Pointing to the need for the Indian leather industry to reorient its strategies, Mr. Ramesh said it should get into the "volume game," as played by China and Vietnam, tap the huge demand for footwear for women and children, increase the market share of its footwear in the U.S. and explore the potential of the domestic market.

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