India a new destination for FDI in leather

New Delhi, July 1 (UNI) India's Council for Leather Exports (CLE) today said it will increase its exports worldwide, particularly to the US, to 7 billion dollars from the present 2.7 billion till the year 2010.

''We are witnessing an unprecedented interest by foreign investors in India this time, and are looking to increase our exports worldwide to 7 billion dollars from the present 2.7 billion dollars till 2010,'' CLE President Rafique Ahmad said here at the opening of the Delhi International Leather Fair.

Till now Europe has accounted for a majority of Indian leather exports, but now the Council is exploring the possibility of tapping the US market as well.

Mr Ahmad further said that vis-a-vis China, the leading leather exporter of the world, India is fast catching up.

''Increasing labour costs in China, are forcing investors to look for alternatives in India, which should capitalise on the situation, as it can provide cheap labour and raw material at lower costs,'' Mr Ahmad said.

At present, India is the second largest leather exporter in the world accounting for 2.2 per cent of the global trade, while China leads the world exports accounting for as much as 22 per cent of the world share.

Also speaking on the occassion were Department of Commerce Joint Secretary Jayant Dasgupta, who informed that the government too is doing its bit towards providing further impetus to the sector.

He also announced the formation of Special Economic Zones(SEZ) in the sector and other tax relaxations and benifits.

UNI MQA RA PC1810