Export of leather and its products registered a 8.33% growth in terms of the dollar and 10.72% in rupee terms during 06-07, owing to increased exports of footwear, finished leather and leather goods, to traditional European markets and the US.
According to official figures released by the Council for Leather Exports , exports moved up from $2,752.50 million to $2981.79 million (from Rs 12,186.28 crore to Rs 13,492.44 crore) during 06-07. Leather footwear, which accounted for 31.89% in the export in the leather industry, touched $4302.77 million in 06-07, showing 17.71% growth in dollar terms and 20.31% in rupee terms. The UK, the US, Germany, Italy, France, Spain and the Netherlands were the major footwear markets for India. These countries accounted for 81% of the total leather footwear exports in 06-07. During 06-07 the exports were at $690.66 million (Rs 370.50 crore), marking an increase of 4.62% in dollar terms and 6.92% in rupee terms. The US, the UK, Italy, Germany, France, Spain, the Netherlands, Australia, Belgium and Denmark were the major markets. During the last fiscal, export of this commodity moved up to $688.05 million (Rs 3,113.39 crore), up 8.14% and 10.52% respectively. Hong Kong, Italy, China and Korea were the major markets.
The leather garment exports had been on the decline for some years mainly due to cheap products from China and increased use of alternative materials. In 06-07 exports fell further to $308.98 million (Rs 1398.14 crore) from $333.30 million (Rs 1475.63 crore), down 7.30% and 5.25%. Italy, Germany, the US, the UK, France, Spain, the Netherlands, Denmark, Canada and Belgium were the major markets. Footwear components exports to Italy, Germany and France had 7% share in leather and products exports. Last year, exports increased to $212.65 million (Rs 962.24 crore) from $182.58 million (Rs 808.34 crore), up 16.47% and 19.04%.