The growth is attributed to the increasing demand for leather goods and footwear from countries like China, the United States, and the European Union.
The Leather Industry in India
The leather industry in India is one of the largest in the world, with a history dating back to the Mughal era. The industry has grown significantly over the years, driven by the increasing demand for leather goods and footwear from both domestic and international markets.
Key Statistics
The leather industry in India is valued at over $10 billion annually. The country exports over 70% of its leather production. The top leather products exported by India are shoes, handbags, belts, and wallets. ## The Growth Drivers*
The Growth Drivers
Several factors are driving the growth of the leather industry in India. Some of the key drivers include:
Increasing demand from China: China is one of the largest markets for Indian leather exports. The country’s growing middle class and increasing demand for leather goods have led to a significant increase in exports to China. * Growing demand from the United States: The United States is another significant market for Indian leather exports.
The Indian Export Sector: A Growing Force in Global Trade
The Indian export sector has been a significant contributor to the country’s economic growth, with a total turnover of approximately $19 billion. This substantial figure encompasses not only domestic sales but also exports, which account for a substantial portion of the total turnover. In this article, we will delve into the Indian export sector, exploring its growth, trends, and opportunities.
Key Statistics and Trends
The Indian export sector has been growing steadily over the years, with a compound annual growth rate (CAGR) of around 10%. The sector’s total turnover has increased by over 50% in the past five years, driven by a combination of factors such as globalization, technological advancements, and government initiatives. Exports account for approximately 70% of the sector’s total turnover, with the remaining 30% consisting of domestic sales. ### Opportunities and Challenges*
Opportunities and Challenges
The Indian export sector is poised for further growth, driven by emerging markets and increasing demand for Indian products. However, the sector also faces several challenges, including:
Competition from other emerging markets: Countries such as China, Vietnam, and Indonesia are increasingly competing with India for export business. Trade tensions and protectionism: Rising trade tensions and protectionist policies in major markets, such as the United States and the European Union, pose a significant threat to Indian exports. Infrastructure and logistics challenges: India’s infrastructure and logistics capabilities are still developing, making it difficult to transport goods efficiently and effectively. ### Exploring New Markets**
Exploring New Markets
Despite these challenges, Indian exporters are exploring new markets and business opportunities. One of the most promising regions is Africa, where Indian companies are establishing a strong presence.
Reducing export duty could boost India’s textile industry and economy.
The Current Situation
The export duty on wet blue and crust is currently set at 20 per cent, which has been in place since 2018. This duty is imposed on the export of these raw materials, which are used to produce textiles. The council’s recommendation is to revisit this duty and consider reducing it to zero.
Benefits of Reducing Export Duty
Lowering the export duty on wet blue and crust could lead to increased exports of textiles, which would boost the country’s economy. Reduced export duty would make Indian textiles more competitive in the global market, attracting more foreign investment and creating new job opportunities. Lowering the export duty would also help to reduce the cost of production for textile manufacturers, making them more competitive and increasing their chances of survival in the global market. ## The Impact on the Textile Industry*
The Impact on the Textile Industry
The textile industry is a significant contributor to India’s economy, with the country being one of the largest textile producers in the world. The export duty on wet blue and crust is a major factor in the industry’s competitiveness, and reducing it could have a significant impact on the industry’s growth and development.
Challenges Facing the Textile Industry
The textile industry is facing stiff competition from other countries, particularly China and Bangladesh, which have lower production costs and more favorable trade policies. The industry is also facing challenges related to labor costs, environmental concerns, and infrastructure development. Reducing the export duty on wet blue and crust could help to address some of these challenges, but it would also require other policy changes to support the industry’s growth and development. ## The Way Forward*
The Way Forward
The council’s recommendation to reduce the export duty on wet blue and crust is a positive step towards supporting the growth and development of the textile industry.
On challenges, he said the industry has to work on adequate skilled labour and design development.
