Chennai: Leather exports from India fell 4.5% in FY 17. Between April to November 2015 & 2016, exports fell to $3.8 billion from $3.9 billion.
"The fall is lower compared to close to 10% last year. Despite European markets performing badly, there has been a 8.5% increase in exports to the US as they're moving their focus to India from China," said Aqeel Ahmed, vice chairman, CLE. Exporters also add that Trump's anti-China stance would further increase India's sale of leather goods.
Indian exporters are also hopeful of newer order flow from the US. Naresh Bhasin, a Mumbai-based exporter said that their existing US-based clients have been increasing their orders. "33 exporters have been shortlisted for newer orders, which we expect to get as China's labour costs have risen at 6% every six months," he added. The EU, one of the major markets for India's leather exports has reduced its imports from India owing to unfavourable market conditions. European markets continue to show a dip in importing leather goods from India with the UK registering a 12% reduction, mostly due to Brexit and France demanding 25% lesser compared to the previous fiscal.
Source: timesofindia.indiatimes.com