In Kanpur, govt policies boost exporter numbers, but European markets weaken exports

The DGFT, which initiated data collection in 2021, reveals that the most significant decline in exports transpired within the saddlery sector, which incurred a substantial loss of ₹300 crore in the previous year alone.

KANPUR Data released by the Director General of Foreign Trade (DGFT) has unveiled an intriguing trend within Kanpur’s export sector. Over the last two years, the number of exporters in the region has experienced a surge, yet the actual value of exports has seen a decline.

Director General of Foreign Trade (Sourced)

The DGFT, which initiated data collection in 2021, reveals that the most significant decline in exports transpired within the saddlery sector, which incurred a substantial loss of ₹300 crore in the previous year alone. A key contributing factor, particularly impacting the leather industry, has been the ongoing conflict between Russia and Ukraine. This geopolitical tension has resulted in a dwindling demand from European and American markets.

Official statistics indicate that 757 new exporters entered the scene in 2021-22, augmenting the existing 3,001. During this period, Kanpur’s total exports amounted to ₹9,500 crore. However, the following year witnessed a drop, with exports dwindling to ₹8,995 crore in 2022-23, resulting in a net loss of ₹500 crore. Nonetheless, the number of exporters continued to swell, approaching nearly 5,000 in Kanpur.

In the current fiscal year, exports have tallied ₹3,000 crore between April and September, a figure that many consider falling below expectations. Nevertheless, there remains optimism that the numbers will rebound in the upcoming six months.

The decline in exports is particularly conspicuous within Kanpur’s saddlery sector, which commands an 80% share of the global market. In 2021-22, even in the wake of the pandemic, the saddlery sector exhibited resilience, with a turnover of ₹1,700 crore, which has since reduced to ₹1,400 crore in 2022-23.

Amit Srivastava, the assistant director at the Indian Export Council, attributes the surge in the number of exporters to government policies that foster entrepreneurship and facilitate exports. However, the persistent discord between Russia and Ukraine and its repercussions on the European economy have negatively impacted saddlery exports and led to financial losses.

Taj Alam, the former chairman of the Council for Leather Exports and a prominent saddlery exporter, underscores the necessity for the leather industry to emphasize overseas markets. He said, “We have not prioritised this in the past, and now we are experiencing the consequences. Our primary exports have predominantly targeted Europe, and the absence of this strategic emphasis is evidently hampering our industry.” He further adds that this matter will be a focal point in the agenda for the next council meeting.