Leather exports up at $4.7b in 2011-12.

With a strong increase in order flows from key export markets, India's leather exports have registered a strong double digit growth in dollar terms for financial year 2012. This is the second year in a row the leather exports have reported a double digit rise amid challenging economic conditions in major export destinations.

“We have seen our export of leather and leather products touching $4.7 billion for the financial year 2012, registering a growth of about 26 per cent. The total exports have also exceeded the target of $4.2 billion for the year,” M Rafeeque Ahmed, chairman of council for leather exports (CLE) told Financial Chronicle.

While the actual figures yet to be published, Ahmed said the industry has ended the financial year with a strong growth of 26 per cent in exports. It was mixed trend in exports during the financial year. While the first half saw very strong growth, second half was not as impressive as the first half,” he added. Footwear accounts for major portion of leather exports, followed by leather goods, finished leather and garments. Interestingly, leather industry has moved to products exports from just being an exporter of finished leather. At present over 100 global brands across footwear, garments and goods and accessories are sourced from India.

The leather industry attributes the strong rise in exports to improved order flow from major destinations in the European Union as also due to market diversification programmes.

India’s key exporting destinations include Germany UK, Italy, France, Spain, Netherlands, Belgium, USA, Hong Kong, UAE and Australia. These 11 countries together accounts for about 80 per cent of India’s total leather product exports. European Union alone accounts for about 65 per cent. While EU market continues to pose some challenging outlook despite improvements in order flow, leather industry has been focusing on other potential countries like Russia, Japan, Australia and Canada to boost exports.

Though the industry is facing challenges in the form of uncertain market situation in its traditional market of Europe, the industry has immense potential for growth and employment generation in the long run. In view of this favourable long term outlook, the government has fixed an export target of $14 billion for the leather industry to be achieved by the end of the XII Five Year Plan that is by 2016-17.

Source : mydigitalfc.com