Kanpur, Feb 4 (IANS) The leather industry in Kanpur has received significant relief following the India-US agreement, and United States’ decision to reduce the 50 per cent tariff, with export activity showing early signs of revival and production resuming in several factories across the city.
Industry sources said that operations, which had remained largely suspended for months, are gradually restarting, and workers who were laid off during the slowdown are being recalled in phases.
Following the imposition of the steep tariff, exporters had faced severe disruptions as machinery worth crores of rupees remained idle and consignments meant for the US market accumulated in warehouses. Many exporters were compelled to sell finished goods at heavy discounts, resulting in substantial financial losses and forcing several units to shut down production and reduce manpower.
With the tariff cut now in place and a new trade agreement with Europe, exporters are describing the development as a “double boost”. Industry representatives believe the move will help India regain access to the US market while also generating fresh orders from Europe, paving the way for a full recovery of Kanpur’s leather sector.
Ashad Iraqi, Regional Chairman of the Council for Leather Exports (CLE), said the industry had been going through a severe crisis since August, when the 50 per cent tariff was imposed and business had nearly come to a standstill.
“Due to the diplomatic efforts of the Prime Minister, India has now moved ahead of other countries and will be working with the US on the best tariff terms. This will mark the beginning of growth for the leather industry,” Iraqi said.
Nurulla RC, General Secretary of the Leather Industry Welfare Association, said the situation has undergone a complete turnaround.
“We were extremely disheartened earlier, but with the support of the government, the overall scenario has now changed,” he said.
Mukhtarul Amin, Chairman of the Super House Group, said exports had virtually stopped after the tariff hike but are expected to resume following the reduction.
“With the Prime Minister’s efforts, India now enjoys the lowest tariff compared to other countries, which will strengthen our market. We are deeply grateful for this support,” Amin said.
--IANS
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