The economic crisis in the European Union, a major market for the Indian leather industry, has hit the industry which is looking forward to short term support from the Government, according to Mr M. Rafeeque Ahmed, Chairman, Council for Leather Exports (CLE).
Europe accounts for over 66 per cent of Indian leather products exports, estimated at about $3.85 billion. While exports grew 27 per cent in the first seven months of the current financial year, the second half has been hit.
Exploring other potentials
The industry is exploring other potential markets including Russia, Japan, Australia, Canada, Africa and Latin America. But it has to consolidate and grow in the European market.
Addressing the inaugural session of the India International Leather Fair 2012, he said the CLE, which is a part of the Commerce Ministry, while focusing on marketing policy, is also looking at human resources and infrastructure development for the industry.
plans Skill council
Along with the National Skill Development Corporation it hopes to set up a sector skill council for the industry to train two million workers by 2020 and develop a curriculum for 50 shop floor operations.
The CLE will soon submit its proposals for infrastructure development for the 2012-2017 (XII Plan) period.
Supportive measures
The industry hopes the Union Budget for 2012-13 will include supportive measures including interest subvention on rupee export credit, service tax exemption on tanning operations and common effluent treatment plants and a Rs 90-crore fund for construction of hostels for women employees and enhancement of duty free import scheme.
The industry will make its representation at the pre-Budget meeting on February 3, he said.
Export earner
The Union Minister of State for Finance, Mr S.S. Palanimanickam, said the Centre accords high priority for the development of this sector, which is a major export earner and employment generator.
In the last seven years, except for 2009-10, the industry has sustained a growth of over 10 per cent.
Aggressive marketing, modernisation and attracting investments – domestic and foreign – hold the key to the growth of this sector.
The 27th IILF inaugurated today has over 425 companies including 139 overseas players from 23 countries showcasing their products and services till February 3.