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Indian leather exports down for the year

May 23, 2024 India

Exports of leather and leather goods fell by nearly 10% in the fiscal year ending last March, as compared with the previous fiscal year, due to weak demand from markets such as the US and Europe

According to The Hindu Business Line, exports of leather and leather goods, including sports goods, declined by nearly 10% to 4.28 billion US dollars in the fiscal year ending on the 31^st of March from 4.75 billion US dollars in the previous fiscal year. This result was attributed to weak demand from major markets such as the US and Europe.

The US alone has seen a 35% drop in exports, pointed out M Abdul Wahab, Regional Chairman, Council for Leather Exports, Southern Region, and the economic impact of the war in Ukraine cannot be ignored when considering the Eurozone.

The state of Tamil Nadu, the largest exporter of leather products, recorded a decline of 18% year-over-year to 1.66 billion US dollars in fiscal year 2024 from 2.04 billion US dollars in the previous year, reducing its contribution to total leather exports to 33.77% from 43.20%. Uttar Pradesh, the second-largest exporter of leather products, marginally increased its share to 27.77% from 25.80% in the previous year.

“However, in the current financial year, we are witnessing good positive trends in exports, which are picking up. Along with recent investments in the southern region, especially in sports footwear, we are confident of a strong recovery”, Wahab added, alluding to the fact that major Taiwanese companies (including Pou Chen Group, Honk Fu, Feng Tae, Shoetown and Dean Shoes) have signed a Memorandum of Understanding with Tamil Nadu to start production in the region.

Image Credits: Wouter Naert on Unsplash

India Exports International Trade Leather Leather goods