Leather exports to touch $7 bn

The Indian leather exports is expected to grow to $7 billion by 2011 from the current $2.7 billion, said the Chairman of the Council for Leather Exports, M Rafeeque Ahmed, while announcing the launch of the two day India Leather Summit beginning from tomorrow in New Delhi.

"Indian leather industry will gain from the anti-dumping duty imposed on Chinese and Vietnamese footwear by the European Union in August this year", said Ahmed.

Exports of leather footwear is expected to see the maximum growth from the current $1 billion to $4 billion by 2011. Exports of leather goods, leather garments and finished leather is expected to grow from $650 million, $320 million and $600 million respectively to $1 billion, $400 million and $900 million over the same period.

The growth in the industry would generate employment for five lakh people, added Ahmed. The industry currently employs 24 lakh people.

International brands are looking forward to set up manufacturing facilities in India as anti dumping duties have been imposed on China and Vietnam. We can overtake China and Vietnam in leather exports over the next five years, said Ahmed.

Two companies from Taiwan-Apache and Fengtae-have decided to invest $75 million each in setting up leather Special Economic Zones (SEZ) in Andhra Pradesh and Tamil Nadu, respectively.

More such foreign investments in the leather industry are expected over the next six months, said Ahmed.

With all these, India would be able to increase its share in the world leather market, currently valued at $100 billion, from 2.7 per cent to 5-6 per cent by 2011.