Concerned at the present status of the Indian leather industry, the Union Government has placed it among one of the high growth areas, according to V. Krishnamurthy, chairman, National Manufacturing Competitiveness Council.

Inaugurating the 23rd India International Leather Fair 2008 recently, Dr. Krishnamurthy said: “Our objective is to improve the competitiveness of the leather industry and place it on top. In the last three years our task [the council’s] has been to improve the general status of the industry. We have succeeded in removing a number of road blocks in its development, and much more has to be done to unlock the full potential of the industry.”

By conducting fairs such as this one, the industry had drawn attention to its full potential and what it could offer to others. “Considering the potential, we can grow bigger and achieve much more than the targeted export turnover of $7 billion by 2010,” he said.

He asked the entrepreneurs not to be worried by the rising rupee, but use it as an opportunity to enhance manufacturing capacity and widen design capability.

Mukhtarul Amin, chairman, Council for Leather Exports (CLE), said the prospects for Indian leather exports further brightened, as China was experiencing stagnation in its exports largely owing to a sudden rise in labour cost and electricity problems.

“These two factors, the likelihood of stagnation of China’s exports and the decline in the production of leather articles in Western Europe, have made India a strong and dependable supplier of leather goods to world market.”

Mr. Amin said the Indian leather industry should use the opportunity to modernise its plant, expand capacity, develop brands and introduce innovative marketing techniques to become a high-value segment supplier in the world.

Sheela Bhide, Chairman and Managing Director, India Trade Promotion Organisation, said the rising rupee, pollution at the tanning level and the present market share of the Indian leather industry had to be addressed at the earliest.

Mr. Divya Aggarwal

Money Management Consultants Ltd

Senior Copy Editor, Money Management Consultants Ltd
New Delhi, India

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