It is gratifying to note that as per the DGCI&S published data, our export during 2004-05 has been US$ 2380 million. This is against the official target of US$ 2284 million. In terms of the pre-revised achievement of the preceding year at US$ 2094 million, the achievement in 2004-05 reflects a growth of 13.61%. 

Considering the leather industry’s preparedness, the strategic steps taken and the current growth trends, we have since revised the target to US$ 4 to 4.5 billion by 2009-10. The footwear category being the focus product has been growing at nearly 12% per annum over the last two years. This product alone is expected to fetch an export of US$ 2.5 billion by 2009-10. 

The industry is in a buoyant mood with investments tickling but promising to flow. The tempo of investment is expected to pick up as the modernization scheme awaiting final nod of the Government for quick implementation. With the expected investment of about Rs.2000 crore in the next two-three years coupled with significant increase in domestic demand for footwear and enhanced sourcing from India by major overseas buying companies, the industry is poised to scale new heights. Added to this, is the Government’s support to this industry particularly as it has enormous potential to create jobs for nearly one million in the next 4-5 years.

The Council during its overseas investment seeking programmes, finds that the West European companies are quite keen in building business partnerships with the Indian leather companies. This is already evident as some of the overseas investors are planning to work with the Indian companies in the areas of manufacturing, technology, marketing etc. Perhaps the promotion of one exclusive Leather Tanning Park in Andhra Pradesh, one Footwear Park in Chennai, two Footwear Components Parks in Chennai and Agra and one Leather Goods Park in Kolkata already taking shape will come handy to these investors. The Council also finds that several major sourcing companies based in the US, France, Spain and Italy have either started their procurement or planned to enhance their current business in India. 

I am sure that on account of the concerted efforts of the Government, the Council and the industry, the export from this sector will gain further momentum in the years ahead bringing all attendant benefits into the Indian economy. 


S.AUDISESHIAH
Executive Director