India’s leather exports have experienced a 10% decline in the fiscal year 2023-24, largely due to the ongoing global economic slowdown and fluctuating demand in key export markets. The reduction in exports, which primarily affects footwear, bags, and finished leather goods, has raised concerns within the industry, as it slows the momentum of India’s rapidly growing leather sector.
Key markets such as Europe, the United States, and the Middle East have witnessed a reduction in demand, partly due to rising inflation, reduced consumer spending, and shifts in purchasing behavior. This has been compounded by challenges in supply chain logistics, increased raw material costs, and geopolitical tensions affecting trade routes.
Despite the decline, the Council for Leather Exports (CLE) remains optimistic, attributing the slowdown to temporary factors and highlighting the long-term potential of the industry. The government’s focus on boosting sustainability in production processes, along with the ongoing push for market diversification, is expected to strengthen India’s position once global conditions stabilize.
Experts emphasize the importance of increasing domestic value addition, improving product quality, and exploring emerging markets to mitigate the impact of the slowdown. While the 10% export drop poses challenges, India’s leather sector is expected to rebound in the coming years as demand for premium, eco-friendly leather products and innovative designs continues to grow.
