The Council for Leather Exports (CLE) of India recently said it will sign an agreement with Washington-based Footwear Distributors and Retailers of America and the United States Fashion Industry Association to take advantage of emerging opportunities for Indian exporters there.
From September 2020 onwards, they expect exports to normalise. Despite the impact of the COVID-19 pandemic, there is still a huge opportunity for India to export as it is now a preferred sourcing destination of imports for markets in the USA and Europe.
Export in the leather sector declined from $5.69 billion in 2018-19 to $5 billion in 2019-20.
The major markets are Europe and USA, to which 70 per cent of exports are directed. They were severely affected by COVID-19. Many importers are filing bankruptcy leading to cancellation of export orders.
Exporters are facing difficulties because of export order cancellations because ECGC coverage (insurance) is not extended for pre-shipments.