|
Sarkaritel.com News and
Features
Leather and Leather Processing: India, Ethiopia ink MoU
New Delhi, March 24, 2008
To help their respective leather sector in order to increase
share of global presence in terms of export earning and volume
of leather products, India and Ethiopia made a significant
achievement by signing a MoU at a parallel session on leather
and leather processing during the 4th CII-EXIM BANK Conclave
on India Africa project partnership 2008, Taj Palace on
Friday.
It is a much needed push for the Indian leather manufacturers
as they would access one of the best quality raw leather from
Ethiopia.
While inaugurating the session, Shyamal Gupta, chairman, CII,
also a member of national committee on leather & leather
products, said that today we are delighted to have a
cooperation with Ethiopia. He reiterated that time has now
come for Indian leather industry to take a giant move not only
in domestic market but also in the global market. For India,
leather is a strategic sector which has greater scope for
employment generation as it is a labour intensive sector.
Approximately 2.4 millions of people presently engaged in the
leather sector. He pointed out that for Ethiopia also it is a
much needed agreement as for a long Ethiopia is a raw leather
exporting country which gives a very low percentage value to
leather. Such kinds of hindrances have been faced by many
countries of Africa. Gupta emphasized that India can play a
support role in capacity buildings, research and development
and making African goods globally more valued and accepted.
Lemma, an Advisor from Ethiopia, while highlighting the over
all growth strategy of Ethiopian economy said that one of the
key emphasis is given to private sector as a engine of growth.
Export led industrialization, greater use of local resources
and strengthening of the labour intensive technology are some
of the important issues. Leather and leather product is one of
the sectoral focuses of Ethiopian development strategy. Their
main target is production of 8 to 20 million pairs footwear
annually; 87 thousand to 405 thousand pieces of leather
garment and 41 to 275 thousand pieces leather goods per annum.
So it holds great importance for Indian private manufactures
and associations to actively participate in leather business
in Ethiopia on the eve of the agreement that has been signed
also between the Ethiopian leather industries association (ELIA)
and confederation of Indian industry (CII). Ethiopia also has
favourable environment for foreign investors as it is
providing duty free incentives for foreign investors, tax
holidays of 2 to 8 years depending on the area of interest and
volume of export.
Yizzaw Assefa, chairperson, Ethiopian leather industry, also
emphasized the area where India and Ethiopia can have trade
partnership. Leather is the top priority area for export
earning. Ethiopia supplies 16 million skins per annum.
Ethiopia now is looking for producing finished leather
products rather to remain a raw leather exporting country
only. However the shoe industry is a very new one based on
local technology and traditional methods. He asked the Indian
counterparts to join in this particular segment. He also
invited Indian companies to participate actively in the coming
second ALL AFRICAN LEATHER FAIR 2009, January 20-22.
M.Rafeeque Ahmed who represented CII and signed MOU on behalf
of Indian groups have shown a sense of urgency to send high
powered delegates to Ethiopia. He also emphasized that India
can be good support for Ethiopian leather sector to grow.
G.K Pillai also cited some of the key issues to expand the
leather market. He emphasized how important is building trade
relations between developing countries in the scenario of
dominance of world economy by the developed countries.
Developed countries induced developing countries to produce
export goods where the products are always valued grossly low.
He asked all African countries to think immediately and should
build their trade relations more and more with countries like
India. Joint venture and investments in leather sector must
help the locals of Ethiopia for their betterment a final point
made by Pillai as concluding remarks. It is now important to
both the countries how they proceed to each other to develop
their respective leather sectors.
E-Mail :
newseditor@sarkaritel.com |
