Kolkata, Mar 23 (KNN) Despite concerns over geopolitical tensions and economic downturns in the US and Europe, the leather goods industry in West Bengal is on track to grow by 10 per cent in the fiscal year ending March 2024, according to a senior official.

The Indian Leather Products Association (ILPA) attributes this growth to a shift in sourcing strategies from 'China First' to 'China-Plus-One', which has led to increased demand for Indian leather products, reported PTI.

ILPA President A M Kulkarni expressed confidence in maintaining growth momentum, citing a 10 per cent year-on-year increase in exports from the state, reaching Rs 5,000 crore in 2022-23.

"We will maintain growth momentum from Bengal. We expect at least a 10 per cent year-on-year growth in FY'24. We had exports of Rs 5,000 crore in 2022-23 from the state, expanding by 10 per cent," he stated.

This growth is primarily fuelled by the 'China plus one' strategy, adopted by global leather brands to diversify their supply chains and mitigate risks, with India emerging as a key beneficiary.

Major leather clusters in India, including West Bengal, are witnessing a surge in demand, with China's share of the global leather supply chain decreasing from 34-35 per cent to around 20 per cent.

Rajarshi Dey, Vice President, ILPA, highlighted India's cost-effectiveness as a manufacturing destination, with manufacturing labour wages in China increasing nearly three-fold from 2010 to 2020.

Furthermore, ILPA members, who supply to major global brands like Porsche, Gucci, and Prada, are positioned to capitalize on this demand shift.

Meanwhile, the West Bengal leather industry is actively seeking additional land to accommodate the growing demand, particularly for leather products and fashion units, due to easy access to raw materials.

Kulkarni emphasized the need for at least 20 acres of land to accommodate expansion, as the current leather park near Kolkata is at full capacity. He urged the state government to provide land closer to the city, considering the labour-intensive nature of the leather industry.

(KNN Bureau)