Britain's exit from the European Union, that has led to a 10% drop in the value of the pound, could lead to the leather export industry suffering over 10% reduction in value.
Rafeeque Ahmed, chairman, Council for Leather Exports, reportedly said, “With UK being the second largest exporter from India (after the US), with a 12.5% market share, leather exporters across the country would face losses. We could increase the prices to maintain margins, but no one would be willing to buy, given the economic conditions. Substantial number of exporters across Tamil Nadu, Kanpur, Agra etc, would be affected."
It was felt while the losses are likely to be significant, it is too early to look out for alternatives to keep the business running.
The Indian leather industry, that suffered over 10% reduction in overall exports in FY 2015-16 owing to poor performance of the European market, was showing signs of revival with increase in the number of orders, following increasing cost of