Leather exports are expected to contract by 7-8 per cent in 2015-16 due to unfavourable market conditions and global slowdown, an industry body said today.
"There is growth in exports always. But this year the industry has been slow in terms of export growth, which is mainly due to recession in global economy," Leather Exports Council's Regional Chairman (South) P R Aqeel Ahmed said.
"Normally we have 10 per cent growth. But due to the recession we expect about 7-8 per cent drop in exports by March 2016, compared to last year," he told PTI here.
The country's overall merchandise exports have declined by 18.06 per cent year-on-year to USD 196.6 billion in April-December period of the current fiscal.
The outward shipments were on the decline for 13th straight month in December, contracting 14.75 per cent to USD 22.2 billion in the month due to a steep fall in shipment of petroleum products and engineering goods amid tepid global demand.
However, Ahmed exuded confidence that the leather industry would pick up next year as there was huge growth potential.
"Overall we are looking at 12-14 per cent growth next year (2016-17)," he said.
Referring to the Centre's Make in India campaign, he said leather is a focus product and five countries had been shortlisted for attracting investments.
The council is under the Ministry of Commerce and Industry.
"Leather is a focus product under the Make in India campaign. Foreign (leather) companies have to come and invest here because there will be flow of foreign currency into India. With that as a special area, we focus on five countries, USA, Brazil, China, Germany and Italy", he noted.
Ahmed and representatives from International Union of Shoe Industry Technicians (UITIC) are here to attend the 19th edition of bi-annual 'Congress Technical Footwear Conference' beginning tomorrow.
The theme for this year's conference is 'Future Footwear Factory'. Around 568 people, including 154 delegates from 26 countries such as France, Pakistan, Bangladesh, Italy, Spain are participating in the event.
India is the second largest footwear producer in the world after China.
