Commerce Minister calls to raise leather exports to $ 7bn by 2010

22 Jul '05

4 min read

However, the Minister also noted that global leather trade was valued at US $ 100 billion whereas India's of this was unsatisfactory at a meager two-and-a-half percent. “We must enlarge our share, given India's raw material strength and availability of skilled manpower and competitive wage levels”, he said, while calling for adequate emphasis on design and technology; quality & innovation; and economies of scale.

In a presentation, the Chairman/CLE, Shri Rafeeque Ahmed said that recognising leather as a thrust sector in the Common Minimum Programme (CMP) and the policy support being extended by the union government was a major boost to the industry. The government's latest approval of the Rs.290 crore modernisation and technology upgradation programme would help the sector achieve global competitiveness.

The export performance of US $ 2380 million or $ 2.3 billion (Rs.10691 crore) during 2004-05 was the highest so far which exceeded the target of US $ 2284 million or $ 2.2 billion (Rs.10263 crore). This is closely followed by previous year's export growth of 18%. The positive export growth continues in the current year also as the export in April and May 2005-06 has been Rs.1480 crore as against Rs.1428 crore in the same period last year.

The sector is positioning itself to achieve higher growth through the required support measures. The most important of these are large investments, right sizing of production capacities, upgradation of technology, strengthening leather industry specific infrastructure etc. The US and Europe continue to be the leading markets for Indian leather products accounting for 75% of the export growth. The CLE has also drawn up a plan to promote overseas markets with appropriate strategies.

More Ministry of Commerce & Industry News... More Textiles News - India...