Quality leather goods from India may soon be available in the New Zealand market, if the inquiries received by a delegation of leather exporters are turned into firm deals.
Nine major exporters representing the Indian leather industry were in Auckland on August 31 to showcase a wide range of products –from leather apparel to accessories including footwear, handbags and waist belts.
The delegation comprised members of the Chennai based Council for Leather Exports (CLE), a corporate body sponsored by the Ministry of Commerce and Industry of the Federal Government in New Delhi.
More than 50 New Zealand businesses visited the trade exhibition and buyer-seller meet held at the Stamford Plaza Hotel, with some of them registering an expression of interest in seeking trade arrangements.
The Indian Government has deregulated the leather industry, allowing manufacturers and exporters to modernise their operations and seek overseas markets without having to cope with the often-frustrating bureaucratic rigmarole.
The Government is also permitting 10% Foreign Direct Investment and joint ventures through the so-called, “Automatic Route” with 100% repatriation of profits and dividends in the case of investments made in convertible foreign currency.
These developments augur well for India and New Zealand, which will shortly enter the negotiation phase for a Free Trade Agreement (FTA).
While potential exists in a number of areas for expansion of two-way trade, New Zealand is keen to export value added agro products with technical support, and raw material for use by the Indian leather industry and expect to receive value-added leather goods and other products.
CLE Executive Director Ali Ahmed Khan described New Zealand and Australia as “serious markets” for leather exporters, albeit somewhat neglected in the past.
“There is ample potential for our products in New Zealand and we are aware that it takes time and effort to claim a good market share. Our leather exporters are also beginning to realise the significance of “being there,” establishing a presence in smaller markets,” he said.
He told Indian Newslink that the leather industry, like its counterparts, had been caught in the ‘overnight result syndrome’ but had realised that some markets take time to react.
“We have learnt that the working patterns differ between markets and that requirements vary between countries. We are keen to establish long-term relationships with New Zealand importers and exporters,” he said.
Statistics New Zealand placed the total value of merchandise exports to India as at the end of 2007 at $366 million, while imports were valued at $269 million.
According to CLE, India’s share of the New Zealand’s leather market is small - $8.25 million in 2007-2008. New Zealand’s total leather imports are worth about $370 million annually.
Visitors to the exhibition and buyer-seller meet learnt of the position of prominence that the Indian leather industry occupies in the world.
They were told that Indian leather manufacturers and exporters are keen on the planned development of the industry, with optimum utilisation of available raw material for maximising the returns particularly from exports.
“The leather industry is the eighth largest exporter in terms of foreign exchange earnings of the country. The composition of export of leather and leather products from India has undergone a structural change during the last three decades, from merely an exporter of raw material in the sixties to that of value added products in the nineties. The value added finished products presently constitute around 80% of the total export from the Industry, which was only 7% in 1956-57,” Mr Khan said.
Source : indiannewslink.co.nz