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Footwear stocks climb 5% on govt's new scheme announcement

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New Delhi: Footwear stocks gained as much as 5 percent on Wednesday after Finance Minister Arun Jaitley announced plans to launch a scheme for the labour intensive leather and footwear sector that will boost its growth and create new jobs.

Shares of Liberty Shoes surged 5 percent, Mirza International climbed 4.79 percent, Relaxo Footwears gained 2.96 percent, Superhouse (2.92 percent) and Bata India (0.91 percent) on BSE.

The scheme will be on the lines of the package announced for the textiles sector in June last year.

“A special scheme for creating employment in the textiles sector has already been launched. A similar scheme will be implemented for the leather and footwear sector,” Jaitley said.

Indian leather manufacturers are facing tough competition from the Chinese in terms of pricing. The government aims to increase the sectoral exports to $15 billion by 2020 from the current $7 billion.

Source: News18