The markets in US and Europe are undergoing a major slowdown and the Indian Leather exports have been badly affected. The Leather industry of India saw a significant growth of 13.67 percent at $3.47 billion in the year 2007-08, which broke a four year record. This confidence instigated the industry to set a target of $ 4 billion in the next fiscal. 

But in the recent economic scenario, the target seems impossible to achieve. To quote the Chairman of the Council for Leather Export (CLE) Mukhtarul Amin "Indications for the next season are quite weak and we are worried about it". 

The warning bells started ringing in September when the industry showed a 10 percent growth as compared to 27 percent in August. The Ministry of Commerce however is taking measures. 

G.K.Pillai, Commerce Secretary said, "Commerce Ministry is preparing a relief package in consultation with the industry and it will be submitted to the finance ministry. In the next couple of days, it will be finalized."

The depreciation in rupee normally increases the profit margins but with the cancellation of orders, the situation is only worsening. The Indian Leather industry is going through rough times and is forced to cut expenses by laying off employees as many of the US and European buyers have either shut down the business or have gone bankrupt.