Euro turmoil impacts Indian leather sector
According to India’s Council for Leather Exports (CLE), economic problems in the Eurozone have had a major impact on the country’s leather industry.
The leather industry’s turnover was $4.72 billion in 2011-12, up 22.9% compared with $3.84 billion in 2010-11. However, warmer weather and declining exports to key European markets are expected to cut turnover considerably in 2012-13.
Talking to The Hindu, CLE regional chairman south, Aqeel Panaruna, said: "Within a period of three years, we were able to reverse the negative trend and were close to posting a robust growth of 28% in 2011-12.
"However, there was a slowdown in order books from January 2012 onwards with the European crisis spreading to Greece, Italy and Spain. Ultimately, we did not meet the initial forecast, and were able to report only a growth of 22%."
Mr Panaruna said leather firms would be looking for export
opportunities in Russia and the US to stem the tide. Around 70% of the country’s
leather and leathergoods are currently exported to Europe.
