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Leather exports from India may touch US$ 8 bn by 2012

Assocham has said leather exports from India have the potential to touch USD 8 billion by 2012 from the current USD 3 billion on the back of capacity expansion and increased production by manufacturers.

In a paper on 'Leather Exports', Assocham on Monday said leather manufacturers need to be encouraged to diversify their operations into non-leather footwear manufacturing.

The sector currently employs 2.5 million people and this number is expected to grow by another two million in the next five years, it added.

The industry is among the top eight export earners for India and holds tremendous potential if more focus is laid on increasing the tanning and production capacity to cater to the huge footwear market, Assocham President Venugopal Dhoot said.

The present tanning capacity needs to be doubled to five billion sq ft and in the case of footwear, current capacity of 250,000 pairs a day should be increased to over 1.5 million pairs, Dhoot added.

The paper said about 15 percent of the total purchase of leading global brands in footwear, garments, leather goods and accessories in Europe is outsourced from India. - DDNews India

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