Leather exports to touch $5.4 bn by 2014: ASSOCHAM

KOLKATA: Despite slowdown in European economies, leather exports from India are likely to register a growth of 13% and touch $5.4 billion by 2014 from the current level of $3.8 billion, according to the latest study undertaken by apex chamber Assocham. The leather industry currently employs over 3 million workers. “With a strategy in place, the number of potential employees can rise by another 3 million in next 5 years since the potential of leather industry is yet to be harnessed,” said The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Exports of leather and leather products have risen from US$ 3404.57 million in 2009-2010 to US$ 3844.86 million in 2010-11, recording a positive trend of 13%. India has a 3.5% share in the global leather trade and ranks eighth in the world in terms of the country’s foreign exchange earnings from the industry. The composition of exports has also been changing, with more focus on value added products.

The major markets for Indian leather products are Germany with a share of 14.34%, UK 12.80%, Italy 11.52%, USA 8.72%, Hong Kong 8.11%, France 7.07%, Spain 6.31%, Netherlands 3.98%, Belgium 2.02%, U.A.E.1.92%, Australia 1.30%. These 11 countries together accounts for nearly 78.09% of India’s total leather products export. Export of leather & leather products to Germany, USA, UK, Italy, France, Hong Kong, Spain, Netherlands, Russia, New Zealand, Canada, South Africa, UAE and Japan have shown positive growth during April-March 2010-11.On the other side, exports to Australia, Greece, Switzerland, Portugal, and Ireland have shown a decline.

The chamber study said an estimated 15% of total purchase of leading global brands in footwear, garments, leather goods & accessories in Europe is outsourced from India.According to the suggested roadmap for leather industry, it has been projected that footwear would continue to be the largest segment of exports constituting about 56% of the total exports.