London Daily

Focus on the big picture.
Tuesday, Aug 11, 2026

India doesn't want to shut down its economy again. It may get crushed anyway

India doesn't want to shut down its economy again. It may get crushed anyway

India's government locked down the country last year to avoid an out-of-control Covid-19 outbreak that so many of the world's countries had endured. The plan was largely successful, but it crippled India's economy in the process.

Now India is facing its own devastating Covid-19 crisis, and Prime Minister Narendra Modi is reluctant to put his economy through another round of turmoil.

India's economy may get crushed again regardless.

That's beginning to play out in India's leather industry.

An Indian worker puts strips of leather to dry at a tannery in Kolkata, India on October 11, 2020.


India is a major global exporter of leather and leather goods. The country is the second-largest exporter of leather garments and fourth-largest exporter of leather goods in the world, according to the Indian Council for Leather Exports (a division of India's Ministry of Commerce & Industry). It is also a major producer of footwear after China, producing nearly three billion pairs of shoes annually.

Last year, the pandemic dealt a serious blow to India's leather industry. Leather exports slumped a steep 29.1% last year over the prior year, as the industry lost almost $1.4 billion in exports. That's because shoppers in the United States, European Union and United Kingdom held off on purchases during their own lockdowns, according to Aqeel Panaruna, chairman of the Council for Leather Exports.

One industry expert, who didn't want to be identified and is also currently infected with the coronavirus, said leather producers have suffered from a cumulative knock-on effect of a protracted shutdown last year. He's worried that a worsening second wave could set the industry back once again.

Much of that worry is fueled by the dynamics of the industry's workforce.

"The majority of the workforce is in the 18 to 45 years of age and have not been vaccinated as yet," noted Sanjay Leekha, vice chairman of CLE.

"We're relying on god now"


Shashi Kashyap is senior manager with Indian Leather manufacturer, a leather products manufacturer and exporter based in New Delhi. The 30-year-old family business operates three production facilities in the city, which is currently gripped by worsening health crisis.

In New Delhi, crematoriums are overflowing with Covid victims as the healthcare system buckled under the sheer volume of daily patients of the deadly virus. The country reported almost 380,000 new infections on Thursday, marking yet another global record for the highest single-day case count.

Kashyup said he has Covid, his elderly father is also infected as are other members of his family.

"We are just relying on god right now to get us through this," he said. "There's nowhere to go to get tested, no room in hospitals to get admitted. People are dying on the streets."

As he grapples with his personal reality, the company where he works is in dire straits, too.

Indian Leather Manufacturer employs more than 500 people and produces leather goods -- jackets, bags, boots, belts, equestrian products -- for customers in the United States, Europe and elsewhere.

"We get orders for 5,000 to 10,000 jackets just from one client," said Kashyap. "We can't name our overseas clients but they are in the luxury space," he said.

2020 was a devastating year for the business. "All three of our facilities shut down for the first part of the year. Everything came to a stop," he said. Then, as business started to pick back up in the fall, India started experiencing a deadlier second wave.

"We only operated for two months last year and now we're shut down again," said Kashyup.

Indian Leather Manufacturer, a leather products exporter based in New Delhi, is struggling to stay in business as the country suffers a devastating Covid-19 second wave.


Kashyup said it's a situation that's being played out across India's key leather industry.

"I would say 50% of the factories in our industry were closed last year," he said. Kashyup said his company is struggling to hold on to its skilled craftspeople.

"We have to find a way to pay them even in this shutdown because if we don't, we know they just won't be able to survive. If it's not Covid, it will be because they have no money to live on."

Raw material stockpiles are "becoming a concern"


Randa Apparel & Accessories, a large supplier of apparel and accessories like leather belts and wallets to retailers including Nordstrom (JWN), Walmart (WMT), Costco and Kohl's (KSS), is closely watching the situation in India.

Some of its owned and licensed brands include Levi's, Calvin Klein, Cole Haan and Haggar Clothing Co.

"For accessories, most of our raw material for India production (leather) comes from the north and is suffering understandable and considerable delays," said David J. Katz, EVP and chief marketing officer of Randa Apparel & Accessories.

"Our local raw material stockpiles are becoming a concern as demand for belts and wallets in the United States increases. However, our primary factories, suppliers, and new joint venture in India are in the Chennai region, which has been less affected by the pandemic spread. We're hoping it stays that way.

Production has been chiefly on schedule. Our deliveries from India have been somewhat delayed due to transportation and logistics backlogs."

Newsletter

Related Articles

0:00
0:00
Close
UK Manufacturing Output Records Fourth Straight Month of Growth
UK Condemns Russian Torture of Ukrainian Prisoners and Recruitment of Foreign Nationals
Long-Lost Royal Navy Warship HMS Tiger Found in English Channel After 118 Years
Northern Ireland Finance Minister Seeks Urgent Treasury Talks Over Regional Budget Pressures
UK Government Targets Subscription Traps and Misleading Discounts in New Consumer Rules
Alleged Cartel Boss Daniel Kinahan Extradited From Dubai to Face Criminal Charges
AI Chatbots Challenge Traditional News Consumption and Raise Job Concerns
Andy Burnham Government Promises Crackdown on Exploitative Business Practices
UK University Funding Model Faces Growing Pressure From Unsustainable Student Debt
Government Urged to Subsidise Energy Bills for Vulnerable UK Households
UK Military Spending Plans Threaten to Deepen Infrastructure Funding Gap
Israeli Government Rejects US Peace Framework for Gaza
New Labour Government Signals Closer Economic and Strategic Ties With European Union
Amber Heat-Health Alerts Issued Across England as Temperatures Threaten 36 Degrees
UK Economy Expected to Grow Despite Energy and Supply Chain Shock From Iran Conflict
Foreign Social Media Accounts Drove Disinformation During Belfast and Southampton Riots
Record Number of Migrants Cross English Channel in Single Vessel as Smugglers Deploy Mega-Dinghies
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
Reports of Mark Zuckerberg-Linked Superyacht Declining Rescue Assistance Draw Maritime Scrutiny
Preserving Three Banksy Artworks in London Has Cost Taxpayers Nearly £150,000
Four Ugandan Athletes Disappear From Delegation After UK Sporting Events
French Authorities Report Channel Interventions as Cross-Border Migration Dispute Continues
Home Office Admits Error in Settled Status Case Involving Long-Term Italian Resident
Unite Calls for Independent Review of UK Budget Watchdog's Fiscal Forecasting Rules
Thinktank Calls for £175 Annual Energy Bill Cut for Low-Income Households
Foreign-Linked Social Media Accounts Amplified Recent Unrest in Belfast and Southampton, Analysis Finds
London Mayor Sadiq Khan Orders Westminster to Drop Proposed Soho and West End Hospitality Ban
Royal Navy Deployments to Monitor Russian Activity in UK Waters Rise 25 Percent
UK Economy Expected to Grow 0.4 Percent in Second Quarter Despite Geopolitical Pressures
Andy Burnham Launches Cost-of-Living Measures Targeting Subscription Traps and Misleading Discounts
Hyper-Realistic Reborn Dolls Draw Collectors Seeking Comfort and Craft
Gen Z Cuts Back on Dating as a Night Out Nears $200
Patients Turn to Artificial Intelligence for Therapy as Psychiatrists Warn of Privacy and Clinical Risks
Couples Embrace ‘Sleep Divorce’ to Protect Rest and Reduce Tension
Meta Ordered to Pay $567 Million and Change Facebook and Instagram Safeguards for Children
Up to only 10 Months in Prison for Swedish Officer’s Murderer Sparks Anger
Success: Nvidia Turned Gaming Chips Into the Engine of the AI Boom
Jorge Messi, Lionel Messi’s Father and Longtime Agent, Dies at 68
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Advertising trick: Pepsi’s Harrier Jet Commercial Led to a $700,000 Court Fight
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Danube Drought Exposes Nazi Wrecks and Pushes Central Europe’s Power System to the Brink
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Air Traffic Control Outage Grounded Flights Across the Midwest
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
Partial Solar Eclipse Expected to Draw Interest Across Southwestern UK
UK Graduate Job Postings Fall 7% as Entry-Level Opportunities Remain Scarce
UK Private Sector Returns to Growth as July Activity Reaches Highest Level Since April
UK Summer Drought and Wildfires Raise Pressure for Stronger Environmental Measures
×