West Bengal Leather Industry projects 10 per cent growth in FY24

Lear objects expansion: lear goods sector in West Bengal is gearing up for a robust growth trajectory despite prevailing geopolitical tensions and economic uncertainties in key international markets. According to a senior official, industry is expected to witness a 10 per cent expansion in fiscal year ending March 2024.

Citing insights from Indian Lear Products Association (ILPA), strategic shift in sourcing strategies by global brands, from a reliance on China to a diversified 'China-Plus-One' approach, emerges as an important factor driving demand for Indian lear goods amidst challenging times.

ILPA President A M Kulkarni affirmed region's stefast growth momentum, citing West Bengal's export figures of Rs 5,000 crore in previous fiscal year, reflecting a noteworthy 10 per cent increase from year before.

This growth narrative is underpinned by proactive aptation of 'China plus one' strategy by global brands, aiming to diversify supply chains and mitigate risks. West Bengal emerges as a prime beneficiary of this trend, aligning with broer shifts witnessed across various sectors.

Rajarshi Dey, ILPA's vice-president, highlighted India's competitive vantage, driven by cost-effectiveness and a skilled labour force, particularly amidst escalating labour wages in China over past dece.

Key players within ILPA's membership roster, boasting prominent global brands such as Porsche, Gucci, and Zara, furr underscore region's significance in international market.

However, amid this optimistic outlook, industry faces pressing challenges, notably concerning land availability for expansion. Kulkarni emphasized urgent need for ditional land, approximating 20 acres, to support growth ambitions of existing players and attract new investments, especially considering saturated capacity of current lear park in Bantala.

In essence, despite global hewinds, West Bengal lear industry's resilience and growth prospects underscore its pivotal role in India's economic landscape. Strategic responses to evolving market dynamics, coupled with infrastructural enhancements, will be critical in sustaining this upward trajectory and furr solidifying region's position as a key player in global lear goods market.

With PTI Inputs