CHENNAI: India’s leather exports fell 10 per cent in dollar terms in 2015-16 compared with 2014-15. The industry had achieved a cumulative annual growth rate of 13 per cent for five years till last fiscal.
The fall in leather exports in FY16 was on account of slowdown in the EU, a major export destination for Indian leather, with a share of more than 50 per cent of total exports. Also, currency fluctuations and weak demand in a few other key markets in Asia impacted exports.
In 2015-16, export of leather and leather products stood at $5.85 billion, against $6.49 billion in the previous fiscal, a 9.86 per cent fall.
In rupee terms, exports were down 3.49 per cent at ₹38,325 crore when compared with ₹39,712 crore in the previous year, according to the statistics of the Council for Leather Exports quoting DGCI & S Directorate General of Commercial Intelligence & Statistics) data.
The fall in exports was across all categories, including finished leather, components, footwear, goods, garments and saddlery and harness.
Footwear, which accounts for a little over a third of share in India’s leather exports, reported a 6 per cent decline at $2,147 million when compared with $2,278 million in the previous fiscal. Leather goods exports fell to $1,369 million from $1,453 million, while finished leather registered a 21 per cent fall at $1,046 million ($1,329 million).
Export of different categories of footwear held a share of 47 per cent in overall leather exports with an export value of $2,737.85 million in 2015-16. This is followed by leather goods & accessories with a share of 23 per cent, finished leather at 18 per cent, leather garments 9 per cent and saddlery & harness at 3 per cent.
