Agra's shoe sector cheers duty-free input scheme
AGRA, Feb. 2 -- The footwear and leather industry in Agra has welcomed the Union Budget 2026-27 for expanding the IGCR (Import of Goods at Concessional Rate) scheme to enable duty-free import of inputs for shoe upper exports, a move expected to enhance the cost competitiveness of Indian manufacturers.
Union finance minister Nirmala Sitharaman, in her Budget 2026 speech on Sunday, announced an expansion of the duty-free import facility for the leather and footwear sector. The benefit, previously available for exports of leather or synthetic footwear, will now be extended to exports of shoe uppers, allowing manufacturers greater flexibility in sourcing inputs.
Puran Dawar, chairman of the Development Council for Footwear & Leather Industry (DCFLI) and convenor of Agra Footwear Manufacturers & Exporters Chamber (AFMEC), said the budget addresses a long-standing industry demand.
"The government has expanded the list of inputs under the IGCR scheme, enabling duty-free import of inputs for exports of shoe uppers. This will enhance the cost competitiveness and export capability of Indian leather and footwear manufacturers," Dawar said.
He added that the budget aims at accelerating economic growth through higher public capital expenditure while maintaining fiscal discipline, with the deficit capped at 4.3%.
"The budget places strong emphasis on the MSME (Micro, Small, and Medium Enterprises) sector, with special focus on textiles.
Leather and footwear have received meaningful support through export-oriented measures," Dawar said.
He called it a balanced and forward-looking budget focused on long-term economic strength, investment, exports and job creation.
Union minister and Agra MP Prof SP Singh Baghel called the budget a roadmap for building a 'Viksit Bharat'. "Tourism was mentioned several times including medical tourism. The budget discussed ways to promote heritage," Baghel stated.
Aligarh mayor Prashant Singhal welcomed the emphasis on Tier II and Tier III cities. "The budget aims at lowering imports and increasing exports in the long run," he said.
However, Rajya Sabha MP and Samajwadi Party national general secretary Ramji Lal Suman criticised the budget for neglecting rural India and farmers' interests.
"There is an urgent need to stop the sharp exodus from villages but the budget is silent over this issue. Agriculture still provides maximum employment and 55% of the Indian population depends on farming, but farmers still await their due in the economy," Suman said. "Nations like the USA, Brazil and China have storage capacity more than their production but India lags in this aspect, resulting in wastage of a major share every year."...
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