Strategic Fiscal Initiative Bolsters Agra's Footwear Export Competitiveness in 2026-27 Union Budget

The Union Budget 2026-27 introduces a significant policy adjustment with direct implications for India's leather and footwear manufacturing sector, particularly in the Agra industrial cluster. Analysis indicates the expansion of inputs under the Import of Goods for Capital Goods (IGCR) scheme represents a targeted fiscal intervention aimed at enhancing export competitiveness. This modification permits duty-free importation of specialized materials for shoe upper production, directly addressing structural cost disadvantages identified by industry stakeholders. Puran Dawar, representing both the Development Council for Footwear & Leather Industry and Agra Footwear Manufacturers & Exporters Chamber, confirms this addresses persistent sectoral demands. The strategic recalibration is projected to improve margin structures for export-oriented manufacturers while potentially stimulating foreign exchange earnings through increased global market penetration. This budgetary provision demonstrates calculated alignment with broader national manufacturing and export enhancement objectives, providing Agra's specialized footwear ecosystem with improved access to international supply chains while maintaining domestic production integrity.