From the Desk of Chairman

Aqeel_Ahmed

Chairman Column

Dear Member

Export Performance – We hope to achieve positive growth this year

According to latest data of Directorate General of Commercial Intelligence and Statistics (DGCI &S), India’s exports of leather, leather products and footwear have decreased from Rs.162714.34 million in April – August 2018 to Rs.157845.27 million in April – August 2019, registering a decline of 2.99%. In dollar terms, exports declined from USD 2398.44 million in April – August 2018 to USD 2276.39 million in April – August 2019, declining by 5.09%

Two major factors namely global economic slowdown and reduction in prices of basic raw materials (hides and skins) have contributed to the overall export decline from the sector during the first 5 months of this financial year.  Though the leather footwear, leather garments, saddlery & harness and finished leather segments have shown decline, I believe that this is only a temporary phenomenon and exports of these sectors will also pick-up. There are several positive aspects in the current export trends. The Leather Goods segment has shown a health growth of 6.6% while the non-leather footwear segment is showing a significant growth rate of 42.74%. Export has registered positive growth of 2.32% in dollar terms to the major market of USA.  Exports to potential markets like UAE. South Africa, Chile, Mexico and Saudi Arabia have shown positive growth in dollar terms despite the challenging global scenario.

As far as Europe is concerned, the exports have declined to Germany, UK, Italy and France due to issues like recessionary trends and Brexit, but have registered positive growth to markets namely Spain, Denmark, Austria etc., This shows that the slowdown in exports is only temporary. With the immense opportunities provided by the USA market due to US – China trade issues, the expected revival of the European market and the increasing exports to potential markets, I am sure that we will be able to achieve overall positive growth in exports in this financial year 2019-20.

We are tapping all the emerging opportunities through aggressive marketing efforts, with the support of Ministry of Commerce and Industry, Government of India. The upcoming events include a Buyer Seller Meet in New York during Dec. 4 & 5, 2019, Reverse Buyer Seller Meet in New Delhi on Nov. 22 & 23, 2019, India Leather Days in Germany Nov. 27 – 28, 2019 and a Designers Fair in Chennai during Feb. 1-3, 2020. Besides, we are participating in major fairs in Italy, USA, Japan, Australia etc., with the support of the Government.

Investment Promotion

We need huge investments in the form of Foreign Direct Investments (FDI) and Joint Ventures (JVs) so as to ensure the envisaged double digit growth levels in exports. FDIs and JVs not only bring in investments but also the new technologies, innovations and products, which will help us in penetrating the market.

In order to attract investments, CLE is co-ordinating the organization of Investment Promotion Shows by DPIIT – Invest India planned in various countries. As a first step, an investment promotion event is being held in Taiwan during Oct. 22-24, 2019 and such events are planned in China, Vietnam, Korea and Japan as well.

 

With best wishes

P.R. Aqeel Ahmed
Chairman
COUNCIL FOR LEATHER EXPORTS