Fuelled by exports, leather units to turn the corner: CRISIL SME Tracker

Leather exports plummeted in the first quarter, following lockdowns and restrictions in importing nations.

India’s leather industry, which is dominated by small and medium enterprises (SMEs), with 12,000-14,000 units and about Rs 67,000 crore in revenues, appears set to turn the corner after taking a hit over the past 18 months due to muted global demand, made worse by the pandemic.  

As per Directorate General of Foreign Trade data, the year-on-year decline in export value was a mere 5 per cent in the second quarter of FY2021, compared with 55 per cent in the first. This was significant because exports, with some 51 per cent share in total revenue, are the mainstay of the industry.  

Leather