Leather exports to touch $7 bln mark, attract more FDIs

New Delhi, Nov 20 (UNI) The Indian leather industry will touch seven billion dollars, growing two and half times from the present level 2.7 billion dollars, even as more Foreign Direct Investments (FDIs) are expected by 2011.

Talking to mediapersons on the eve of ''India Leather Summit 2006'', Council for Leather Exports (CLE) Chairman Rafeeque Ahmed said the industry would generate employment opportunities for five lakh people across the country, especially in semi-urban and rural areas.

''We will make recommendations to the government for the creation of policies for the growth of the industry after gathering inputs from industry experts during the summit,'' he said.

Mr Ahmed said the leather industry particularly the footwear sector will dominate the market, as it will rise four-fold to 4.2 billion dollars from present one billion dollars.

To reach the seven billion dollars exports, there is need to build up capacity and improve the services of the small and medium enterprises and cottage sector, the CLE Chairman urged.

Talking on the prospective export market, he said, the European Union and the United States are looking at India as prices of Chinese leather has beocome costlier as a result of high labour cost.

He said the industry has attracted Rs 300-crore investments from Taiwan-based companies, Apache and Feng Tae, in SEZs in Chennai and Andhra Pradesh.

The United Kingdom is the biggest market for Indian leather, followed by Germany, Italy and the US.

UNI SBA PKS HT1912