Rs 2,600 crore leg-up for leather business

Prabhu will inaugurate the 33rd edition of India International Leather Fair, Mukhtarul Amin, Chairman, Council for Leather Exports said. Amin was here to brief the media about the India International Leather Fair 2018 in which 475 companies from India and overseas are participating. The fair will be held at the Chennai Trade Centre here. According to him, the Council for Leather Exports is working on various programmes to utilise the Rs 2,600 crore grant given by the Central government within three years - the stipulated time. 

He said the special incentive package will be for human resource development in the sector, setting up of mega leather, footwear and accessories clusters, integrated development of leather sector, leather technology, innovation and environment protection, promotion of Indian brands overseas and others.

Amin said the industry was now looking at diversifying its markets by focusing on the US and Russia - big markets for leather products. He said the Council had engaged experienced consultants in the US to promote Indian leather products there and also arrange meetings with potential buyers.

He said the Bangladesh leather industry had become a major threat for Indian exporters owing to cash incentives given by the government and cheap labour there. Further, leather goods from Bangladesh were not subject to duty by importing countries. 

According to the Council for Leather Exports, the Indian leather industry was pegged at $17.66 billion and exports accounted for around $5.67 billion during 2016-17. Figuring among the top ten foreign exchange earners for the country, the export of leather and leather products increased manifold over the past decades. It touched $5.67 billion during 2016-17, recording a Cumulative Annual Growth Rate of about 3.09% (5 years). The major markets for Indian leather and leather products are USA-15.36%, Germany-11.65%, UK-10.74%, Italy-6.63%, Spain -5.19%, France-5.1%, Hong Kong-4.7%, UAE-4%, China-3%, Netherlands-3%. 

These 10 countries together account for over 75% of India’s total leather and leather products exports. European Union accounts for nearly 56% of India’s total export of leather and leather products. After a decline in the past two years, Indian leather exports have started showing positive growth this year. The Indian leather exports touched $ 4,388.15 million in April-Dec 2017 against $ 4,324.04 mn in April-Dec 2016 registering a positive growth of 1.48%. 

Considering the important role played by design in sustainable development, the Council for Leather Exports have also successfully organised two editions of Designer Fairs during Feb, 2016 and Feb 2017 in the city. The designer fair provides an opportunity to the Indian manufacturers and exporters of leather products and footwear to meet popular overseas and Indian designers. Last year, 42 designers (including 8 from India) displayed their designs in the fair which witnessed a footfall of 375 business visitors and generated a business to the tune of $ 5,00,000.