The Hindu Business Line : `Leather sector must create more jobs'

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Chennai Jan. 31 The value of the leather industry to the country is as an employment generator and not as a dollar earner, and the former should be its focus, according to Union Minister of State for Commerce, Mr Jairam Ramesh.

Addressing the inaugural of the four-day India International Leather Fair, he said that the industry is on the Government's radar because it has the potential to offer over half a million new jobs in the next few years.

As a dollar earner it accounts for just $3 billion against India's total exports of $150 billion. "If the industry chases dollars it will not get the importance it deserves," he said.

Leather footwear dominates the export of leather products, with 36 per cent share; the industry needs to make the effort to increase it to 65 per cent.

This would call for increased infrastructure, production capacities and doubling tanning facilities, the Minister said.

But with the focus on industry growth, the limitations posed by logistics and environmental concerns need to be addressed.

The Shipping Ministry needs to take steps to link Tamil Nadu ports with those in the US and Europe. Exporters currently depend on trans-shipment from Sri Lanka or Singapore.

The industry also needs to work closely with the Environment Ministry to address pollution issues. Both these Ministries are with Ministers from Tamil Nadu, he added.

Responding to Mr Jairam Ramesh, the Union IT Minister, Mr Dayanidhi Maran, said that the Commerce Ministry and the Tamil Nadu Government must to encourage the leather industry to think big in order to exploit the global market.

He urged the Commerce Ministry to support the leather industry in Chennai, which is a strong centre for leather exports. "If it is Bangalore for IT, then it is Chennai for leather," he said.