Growth of the Leather Sector to Remain Sluggish

Given the challenging macro-economic and hostile trading conditions, analysts anticipate that the Indian leather export sector may have to witness a flat growth during the current financial year.

'The global market is unlikely to register a major turnaround in the present quarter. A recovery in the export sector seems doubtful at the moment. Therefore, the leather export sector needs to brace up for greater challenges ahead in the ensuing quarters,' said A Bangad, Proprietor of Euro Line, a small leather bag store in Ahmedabad.

Despite the series of government initiatives undertaken to boost leather exports from India, chances of the sector's early revival are slim. To bolster the leather export segment, the government has also announced a financial package worth Rs 325 crore for leather exports to be made available to exporters supplying their products to the US and the European markets.

'Regardless of the financial support, leather exporters supplying products to these markets are still facing obstacles in increasing their supplies,' said N Ali, Proprietor of Shaheen Leathers, a small-scale leather shop in Kolkata.

Going by the industry projections, the downward trend witnessed in demand and sales graph of the leather export sector is likely to continue for some more time.

Despite the series of government initiatives undertaken to boost leather exports from India, chances of the sector's early revival are slim. To bolster the leather export segment, the government has also announced a financial package worth Rs 325 crore for leather exports to be made available to exporters supplying their products to the US and the European markets.

'Regardless of the financial support, leather exporters supplying products to these markets are still facing obstacles in increasing their supplies,' said N Ali, Proprietor of Shaheen Leathers, a small-scale leather shop in Kolkata.

Going by the industry projections, the downward trend witnessed in demand and sales graph of the leather export sector is likely to continue for some more time.