West Bengal Leather Industry projects 10 per cent growth in FY24

Leather objects expansion: The leather 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, the industry is expected to witness a 10 per cent expansion in the fiscal year ending March 2024.

Citing insights from the Indian Leather Products Association (ILPA), the 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 leather goods amidst challenging times.

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

This growth narrative is underpinned by the proactive adaptation of the '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 broader shifts witnessed across various sectors.

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

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

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

In essence, despite global headwinds, the West Bengal leather 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 further solidifying the region's position as a key player in the global leather goods market.

With PTI Inputs