Leather exports likely to grow by over 12 pc to USD 5.3 bn this fiscal: CLE

New Delhi, Dec 22 (PTI) The country’s leather and footwear exports are expected to grow by over 12 per cent to USD 5.3 billion in the current financial year on account of healthy demand in key global markets, CLE Chairman Rajendra Kumar Jalan has said.

He also said several global companies, including from the US, are showing keen interest in setting up manufacturing bases in India.

“Our exports were USD 4.69 billion in 2023-24, and this fiscal, we are expecting it to increase to USD 5.3 billion. Order books are good for the coming months,” Jalan said, adding that “huge demand is coming from the US and UK”.

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

He informed that the industry is labour intensive, providing employment to about 42 lakh people. The sector has a total turnover of about USD 19 billion, which includes exports of USD 5 billion.

“The sector has the potential to reach a total turnover of USD 47 billion by 2030, which includes the domestic production of USD 25 billion and export turnover of USD 13.7 billion,” Jalan said.

He also requested the government that the Production-Linked Incentive Scheme (PLI) be extended to the sector as it will help achieve the USD 47 billion export target and create additional jobs for about 7-8 lakh people.

When asked about Budget expectations, he said the council has urged the finance ministry to consider removing export duty on wet blue and crust from 20 per cent at present.

“We have also requested to remove import duty on finished leather,” Jalan said.

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

“I request the domestic industry to work on increasing scale as it will help further boost shipments,” he said.

Sachan suggested that there is a need to brand Indian leather goods in the global and domestic markets.

On challenges, he said the industry has to work on adequate skilled labour and design development.