Leather exports likely to grow by over 12% to $5.3 bn this fiscal: CLE

India's leather and footwear export sector is projected to experience significant growth, with an anticipated increase of over 12%, reaching US$ 5.3 billion in the current financial year. This optimistic outlook is attributed to robust demand from key global markets, particularly the United States and the United Kingdom, CLE Chairman Mr. Rajendra Kumar Jalan, highlighted. He noted that the order books are promising for the upcoming months, and several international companies, including those from the US, are expressing strong interest in establishing manufacturing bases in India. The industry is labour-intensive, employing approximately 4.2 million individuals, and has a total turnover of around US$ 19 billion, including US$ 5 billion from exports. 

Looking ahead, Jalan emphasized the sector's potential to achieve a total turnover of US$ 47 billion by 2030, comprising US$ 25 billion in domestic production and US$ 13.7 billion in export revenue. To support this ambitious target, he has urged the government to extend the Production-Linked Incentive (PLI) Scheme to the leather sector, which could create an additional 700,000 to 800,000 jobs. Furthermore, he called for the removal of the 20% export duty on wet blue and crust leather and the elimination of import duties on finished leather. Managing Director of Growmore International Ltd, Mr. Yadvendra Singh Sachan, echoed these sentiments, highlighting the healthy growth rates in the US and EU markets and advocating for the domestic industry to enhance its scale and branding efforts for Indian leather goods in both global and domestic markets. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.