After three static years, the Indian leather garment industry has finally seen an increase in leather exports in the first six months of the fiscal year 2004/2005. Figures released by India’s Council for Leather Exports (CLE) showed a 17% increase in exports from $146.25 million in the first half of 2003/2004 to $171.18 million in the current year. 

A number of reasons have been cited for the increase after three years of no growth. The exchange rate between the rupee, the euro, and the dollar is thought to have had a positive effect in attracting back the European buyers, who are the largest consumers of Indian leather garments. Buyers have also been placing larger orders, which have assisted in raising the figures for the period.

It is not only the leather garment industry that is enjoying a positive trend in India at the moment. Total exports from India for the first nine months (April – November) of the current financial year have crossed the $53 million mark, showing a 23% increase over the previous year. Some of the best-performing sectors were: leather and manufacturing, gems and jewellery, engineering goods, petroleum products, chemicals and related products, textiles (except jute), and cereals (except rice).

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