Apart from a few large footwear manufacturers, the Agra footwear industry mainly comprises 800-1,000 small-scale units engaged in the manufacture of low-cost leather and non-leather shoes and accessories.
But while the footwear manufacturers in the upper price segment are reaping the maximum profits by exporting footwear to European countries, the low-priced segment is entirely dependent on domestic consumption.
These small scale units have been the worst hit lately by the Uttar Pradesh governments decision to levy 8 per cent trade tax on leather and 4 per cent trade tax on non-leather shoes, irrespective of their price.
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