Stop Chinese raw material imports, says industry
MSME Minister Nitin Gadkari has assured the Footwear Industry all possible support from the government to tide over the challenges created by the lockdown imposed to curb the spread of COVID-19.
Interacting with the representatives of Confederation of Indian Footwear Industries via video conferencing from Nagpur on 18 Apr 2020, Gadkari said the government has released over Rs.5,204 crore on 17 Apr 2020 to MSMEs as refund from Income Tax Department in last 10 days which will help the sector in a big way.
The Minister called upon the industry to work upon import substitution and make use of the opportunity for export.
But the industry responded with a request to stop foot-wear raw material import from China and control oversupply of raw material.
During the meeting, the representatives of footwear industry also expressed concerns regarding lack of working capital, logistics, workspace conditions, continuity of business operations and impact on demand of footwear amid COVID-19 pandemic.
The industry has further sought the government’s supportive measures to keep the sector afloat.
It also highlighted that even after the lockdown, production will start gradually and will take few months to reach to full capacity which would lead to issues of excess of raw material.
Gadkari assured to take up relevant issues with the Finance Ministry and Commerce Ministry to provide immediate relief to the sector.
He also said that the footwear industry should take a positive approach while resuming the business operations post lockdown and work together to tap the opportunities that will be created once the COVID-19 crisis gets over. fiinews.com
