CLE: Leather exports may grow by more than 12% this fiscal year to US$5.3 billion

New Delhi, Dec 22 (PTI) The country’s leather and footwear exports are expected to grow in the current fiscal due to healthy demand in key global markets, CLE Chairman Rajendra Kumar Jalan said More than 12%, reaching US$5.3 billion.

He also said that several multinational companies, including the United States, have shown keen interest in setting up manufacturing bases in India.

“Our exports in 2023-24 are US$4.69 billion and this financial year we expect exports to increase to US$5.3 billion. Orders are good in the coming months,” Jalan said, adding, “The huge demand is coming from USA and UK”.

Indian exporters are also exploring business opportunities in Africa, he added.

He said that the industry is labor-intensive and provides employment opportunities for about 4.2 million people. The industry’s total turnover is approximately US$19 billion, of which exports account for US$5 billion.

“The industry’s total turnover is likely to reach US$47 billion by 2030, with domestic production accounting for US$25 billion and exports accounting for US$13.7 billion,” Jalan said.

He also asked the government to extend the Production Linked Incentive (PLI) scheme to the industry as this will help achieve the export target of USD 47 billion and create more employment opportunities for about 7-800,000 people.

Asked about budget expectations, he said the committee had urged the Treasury to consider removing the current 20% export duty on wet blue and hard hides.

“We also demand the removal of import duties on finished leather,” Jaran said.

Talking about the industry, Yadvendra Singh Sachan, Managing Director of Kanpur-based Growmore International Ltd, said that for Indian exports, the US and EU markets are recording healthy growth rates.

“I ask the domestic industry to expand as this will help further increase shipments,” he said.

Sarkan suggested that Indian leather goods need to be branded in the global and domestic markets.

Regarding the challenges, he said the industry must work on providing adequate skilled labor and design development.