Leather industry hopeful of 10% export growth
Export of leather and leather products, which was on the decline for the last two years, is seeing signs of revival.
The exports grew 1.48 per cent at $4,388 million between April and December 2017 as opposed to $4,324 million for the same period in 2016 due to a revival of demand in the EU.
Addressing media persons prior to the 33rd edition of Indian International Fair to be held here from February 1 to 3, Mukhtarul Amin, Chairman, Council for Leather Exports, said the industry expected exports to grow 3-4 per cent in the next few months and reach 10 per cent growth by the end of this year.
“While the EU is the largest market for leather goods, the focus has shifted to other markets such as the US,” he added.
Indian leather exports to the US have grown from 8 per cent to 15 per cent in the last couple years. “But the potential is huge as our market share is barely 1-2 per cent,” he added.
The CLE has tied up with Footwear Distributors and Retailers of America to further increase its market share. Russia, which is the 12th largest global importer of leather and leather products, is another focus area.
“All these initiatives will help us reach 10 per cent growth rate next year,” Amin added. The Centre has approved an outlay of ?2,600 crore for employment generation in the leather industry. As part of the initiative, four mega clusters that will house tanneries, leather goods and footwear manufacturing units and training centres are coming up in Andhra Pradesh, Haryana, West Bengal and Uttar Pradesh.
“These initiatives will generate employment for about three lakh people,” Amin added.