CHENNAI: Exports of leather goods is expected to grow by 20 per cent to reach $6 billion by this fiscal end, according to Council for Leather Exports set up by the Commerce and Industry Ministry.

The export of leather and leather products increased manifold and touched $4.99 billion in 2012-13. In the first nine months of the current fiscal,exports grew by 17 per cent, Council for Leather Exports Chairman Rajendra K Jalan said.

"Last financial year was a very tough year (for the industry). In $terms, the industry grew by about 2.3 per cent.

"But in the first nine months of this financial year it grew by 17.83 per cent. We as an industry are hopeful of achieving 20 per cent growth to $6 billion this (financial) year," he told reporters here.

"If this growth continues in the coming years,then we can reach $10 billion by end of 12th Five Year Plan," he said.

"Footwear contributed the majority of business which was followed by leather goods, saddlery, finished leather and garments," he said.

Twelve countries account for nearly 76.53 per cent of the total exports from leather sector, of which the European Union accounts for 60 per cent, he said.

Noting that the domestic leather market is valued at Rs 25,000 crore, Jalan said as a first step mapping of the industry will be done by appointing an agency.

"We are trying to map the industry. For that we are going to give it to a professional agency and have called for RFPs (Request For Proposals). So far seven people have shown interest. The agency will exactly map the industry -- both the capital outlay and their (industry's) contribution to the revenue of economy", he said.

According to him, of the Rs 25,000 crore domestic market, Rs 11,000 crore was contributed by the organised sector and the balance was contributed by the unorganised sector.

Council for Leather Exports, Regional Chairman (South), P R Aqeel Ahmed said the four southern states contribute 36 per cent of total exports in India.

Source : economictimes.indiatimes.com