Indian leather exports fall dramatically
The Indian government is the latest to announce a fiscal stimulus package.
It has cut excise duties by 4% across the board and is planning a cash injection to boost domestic demand in the economy.
Manufacturers in some of the major sectors, including leather, have reportedly planned cuts in production ranging from 10-50% between November 2008 and March 2009 owing to a fall in demand in the wake of the global economic downturn. As a result, the growth of the manufacturing sector could slow down even further in the coming months.
Employment in the leather and leathergoods sector is expected to fall by 10-30%. Falling demand in the EU, the US, Japan and other countries, along with a steep increase in raw material prices has had a major impact on the leather sector.
A survey by the Federation of Indian Chambers of Commerce and Industry pointed out that leather exports plunged sharply in October compared with the same month last year, a drop of around 10%. Leather exporters are expected to be hardest hit as overseas orders have reportedly fallen by approximately 63%.
