India: US demand spurs leather exports by 18%

With rise in exports to the US, the overall performance of the leather industry has shown 17.94% growth in dollar terms during the first seven months of the current fiscal. According to the latest data, export of leather and leather products from the country has touched $1,970.01 million in April-October 2010 against $1,670.35 million in the same period previous year.

However, due to volatile in currency, the leather exports grew only by 9.80% in rupee terms during the period under review. From Rs 8,073.50 crore reported in April-October 2009, exports rose to Rs 8,865.03 crore till October. As per Council for Leather Exports (CLE), leather footwear segment continued to dominate the overall performance of the leather industry in the international market. Leather footwear exports accounted for nearly 36.96% of the overall exports from the industry. In dollar terms, leather footwear exports during the period stood at $728.24 million, up 22.42%, against $594.85 million to the corresponding period of previous year. While in rupee terms, it rose by 13.98% to Rs 3,277.1 crore in April-October 2010 from Rs 2,875.21 crore.

Finished leather exports grew from $327.32 million to $422.04 million, up 28.94%, footwear components segment moved up marginally by 2.53% to $ 137.87 million ($134.46 million), leather garments exports increased to $232.63 million, registering a growth of 8.61% over $ 214.18 million logged in during April-October 2009.

Leather goods, which forms an important segment of leather exports and which covers a host of products including trunks, suitcases, briefcases, school satchels, traveling bags and luggage, hand bags, shopping bags wallets, purses, and leather belts, showed an increase of 12.01%. From $367.17 million, it touched $411.26 million in April-October 2010. Exports of saddlery and harness went up from $22.95 million to $27.44 million, registering an increase of 19.56%.

Though, European union continues to be a major market for leather and leather products accounting for nearly 67.89% of the overall exports from the country, the US is also looking promising. The share of Indian leather exports to the US is increasing and is expected to grow in the times to come, CLE officials said. Right now, exports to the US, accounts for about 8.71% of the overall exports of leather and leather products from the country, followed by Hong Kong to the extent of 7.35%, the UAE (2.03%), Australia (1.58%) and Africa to the extent of 0.72%.