The finance ministry is working with the Department of Industrial Policy and Promotion (DIPP) to provide incentives for the leather industry. The proposal includes goods and service tax (GST) reduction and export sops.

The labour-intensive industry has interests in export and domestic market and the government believes that an intervention could have multiplier effect.

The government is weighing a proposal to bring down GST rates on footwear which are above Rs 1,000. While Department for Promotion of Industry and Internal Trade (DPIIT) and the finance ministry are in talks regarding the plan, GST Council which will have the final say on rate reduction.