Leather, footwear exports to cross $ 6 bn in FY23: CLE
During Apr-Jan this fiscal, leather and leather products exports rose by 33% to $ 3.6 bn
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New Delhi: The country's leather and footwear exports are expected cross $ 6 billion (about Rs 44,800 crore) in 2022-23 on account of increasing demand in the US and new markets such as Middle East, Africa and Latin America, CLE Chairman Sanjay Leekha said.
Chairman of the Council for Leather Exports (CLE) said implementation of recently signed free trade agreement between India and the UAE would also help in pushing the exports further besides creating employment in the sector. During April-January this fiscal, leather and leather products exports rose by 33 per cent to $ 3.6 billion. The exports stood at $ 3.3 billion in 2020-21 and $ 4.7 billion in 2019-20.
"We are getting good response from the US and that too from big brands. We are also looking to record healthy growth in Latin America, the Middle east, and Europe. In this backdrop, we are confident that we would cross $ 6 billion in 2022-23," Leekha said.
He added that the order books are healthy and the industry is upbeat about recovery from the impact of the Covid-19 pandemic. He added that the industry is labour-intensive, providing employment to 45 lakh people. "The sector has the potential to reach a total turnover of $ 30 billion in next five years, which includes the domestic turnover of $ 20 billion and export turnover of $ 10 billion and generate additional employment for 15 lakh more people," he added.
The industry is also urging the government to extend the Production Linked Incentive (PLI) Scheme to the sector. The government recently approved the Indian Footwear and Leather Development Programme (IFLDP) for continuation from 2021-22 with an approved financial outlay of Rs 1,700 crore.
