While Indian leather exports rose by approximately 15% in value during the last six months of the 2007-08 year, there are now rising fears about the future of the sector as credit crunch conditions continue.

Leather exports are mainly shipped to Europe (around 70%), but 90% of imports are worked out in dollar terms, so the sector is suffering as a result of shifting currency levels. Orders are lower as recession becomes increasingly likely in various parts of the world and some experts believe the £3.5 billion industry is likely to experience significant declines in the coming months.

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