Exports of leather, leather products and footwear from India declined by 4.90% in the first quarter of the current fiscal to $1.3 billion following recessionary trends and fierce price competition.
In rupee terms, the exports touched ₹9,071 crore against ₹9,159 crore for the corresponding period last year, according to the figures released by the Directorate General of Commercial Intelligence and Statistics.
Exports of finished leather products dropped by 30% in dollar terms.
“We have been facing challenges on the export front due to a combination of factors such as recessionary trends and fierce price competition. Consequently, exports from the sector declined during the first quarter,” said Panaruna Aqeel, chairman, Council for Leather Exports.
“But this is only a temporary phenomenon and the sector has the potential to achieve double-digit growth levels in the coming months,” he added.
Referring to the recent announcement of the Union Finance Minister about the new scheme of Remission of Duties or Taxes on Export Products (RODTEP), he said it would be introduced by January 2020. Till then, MEIS (Merchandise Exports from India Scheme) would be in force. RODTEP would more than adequately incentivise exporters than the existing schemes put together.
“This would help enhance our price competitiveness,” he said.
He also said that easy and timely availability of credit at affordable interest levels was extremely important to the leather and footwear sector as this alone could help in tapping the huge opportunities available in the global market.
