India's leather exports posted an almost flat growth rate in 2008-09 owing to slump in demand in major overseas markets.
Outbound shipments of leather and leather products increased by a paltry 1.71 per cent to $3.53 billion in 2008-09 from $3.45 billion in the previous year, according to the Council for Leather Exports (CLE) data.
"We managed to have a flat growth (rate) in 2008-09 thanks to the over 20 per cent increase that we had posted in the first half of the last fiscal...The second half was bad for leather exports as orders from stores in the Western countries suffered," CLE Chairman Habib Hussain said.
About 20 per cent of the country's leather shipments go to Germany. Other major markets include Italy, the UK, France, the Netherlands, Denmark, Switzerland and Canada.
The sector, Hussain said, has also been facing tough competition from China, whose cost-competitiveness has made it a leader in the business, posing a stark contrast to India's three per cent share in the $120-billion global market.
Faced with credit freeze in Europe and the US, the sector is also exploring alternative markets in Latin America, Eastern Europe and the Middle East, he said.
Manufacturers from Chennai, Kanpur, Noida and Agra, Kolkata, Mumbai and Jalandhar clusters make finished leather, leather footwear, footwear components and leather garments, almost all of which have seen a demand drop abroad.
Source : Business Standard