In the face of the current global economic downturn, Indian officials have said they do not expect the country’s leather industry exports to reach their $2 billion target for the current fiscal year. Estimates show that at best, exports will hit 90% of the target, as consumers worldwide continue to cut back on their luxury products.

For the nine months ended December 31, 2002, India’s footwear and leather garment sectors reduced their outputs by 25% and 34% respectively. India’s finished leather exports increased 10.67% to $385 million, yet this figure is disappointing compared to the previous year when growth was 20%.

The Indian Government has earmarked a Rs4.5 billion ($95 million) grant to boost the country’s leather industry over the next five years. However, the money is conditional upon the sector attracting an annual investment of Rs2.2 trillion. In 2002, investments totalled Rs410 million, thus the grant paid out was just Rs96 million.

Share this story: