London Daily

Focus on the big picture.
Thursday, Jun 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
University College London Study Links Physical Punishment to Higher Risk of Bullying
East Midlands Railway Unveils First Refurbished Train in £60 Million Modernization Programme
RNLI Issues National Water Safety Appeal Ahead of Expected Heatwave
Climate Change Raises Subsidence Risks for Millions of Homes Across Southeast England
Manchester Advances Plans for Underground Piccadilly Station With £1 Million Funding Commitment
Anti-Immigration Violence Continues in Belfast Amid Heightened Security Concerns
UK Law Locks Great British Railways Into Public Ownership
Office for National Statistics Adopts Supermarket Checkout Data for Inflation Measurement
Applied Atomics Launches With $500 Million Space Infrastructure Order Book
BYD Plans Nationwide Rollout of Ultra-Fast EV Charging Network
UK House Prices Unexpectedly Fall in May
CBI Warns UK Growth Is Becoming Increasingly Dependent on Public Spending
Makerfield By-Election Fuels Speculation Over Labour’s Future Leadership
Britain Declines to Join EU SAFE Defence Fund
UK Unveils 2040 Emissions Target Despite Strong Political Opposition
Government Orders Full Review of Palantir’s NHS Data Contract
UK Borrowing Costs Climb as Markets Price in Further Bank of England Rate Rises
Resident Doctors Confirm Five-Day NHS Strike Across England
Violent Anti-Immigrant Riots in Belfast Spark Political and Diplomatic Tensions
United Kingdom Sees Recovery in Horizon Europe Research Funding Share to 9.3 Percent
UK Inflation Holds at 2.8 Percent as Office for Budget Responsibility Flags Persistent Price Pressures
United Kingdom Launches National Anti-Fraud Framework to Combat Rising Pension Scam Losses
United Kingdom Expands Sanctions on Israeli Groups While Funding Palestinian Authority Salaries and Gaza Mine Clearance
United Kingdom Issues Three-Month Ultimatum to Major Technology Firms Over Child Online Safety Controls
United Kingdom Government Moves Toward Blanket Social Media Ban for Children Under Sixteen
Widespread Anti-Immigration Rioting Erupts Across Belfast After Knife Attack Linked to Asylum Seeker
Farmers Warn of Crop Losses Following Months of Unseasonal Rainfall
Civil Aviation Authority Launches Review of Regional Airport Operations
Met Office Issues Heat-Health Alert Across Parts of England
National Grid Introduces New Measures to Protect Winter Energy Supply
Northern England Rail Upgrades Receive Additional Government Funding
Wales Advances Green Hydrogen Strategy to Decarbonize Heavy Industry
UK Expands Recruitment Incentives to Address Shortage of STEM Teachers
High Court Opens Door to Climate Liability Claims Against Major Industrial Emitters
Police Service of Northern Ireland Investigates Major Personnel Data Breach
Defense Ministry Overhauls Procurement System to Accelerate AUKUS Submarine Program
Net Migration Remains Above Government Expectations, New Data Shows
UK and Scottish Governments Agree Framework for Expanded North Sea Wind Development
UK Treasury Launches New Tax Incentives to Boost AI and Semiconductor Investment
Bank of England Signals Continued Caution on Interest Rate Cuts
UK Unveils £10 Billion NHS Digital Modernization Plan Centered on AI Integration
Nebius Opens Major Robotics and Physical AI Laboratory in London
Bank of England Data Shows Strong Rise in New Mortgage Approvals
Network Rail Completes Landmark Upgrade of Severn Tunnel Rail Infrastructure
East West Rail Passenger Services Between Oxford and Milton Keynes Set for December Launch
GlaxoSmithKline Reportedly Pursues £7 Billion Acquisition of US Cancer Drug Developer Nuvalent
Bank of England Signals Interest Rates Likely to Remain Unchanged Despite Energy Market Risks
NHS Trusts Launch Job-Cutting Programmes as Financial Pressures Intensify Across England
More Than 130 Labour MPs Urge Ban on Trade With Israeli Settlements
Keir Starmer Orders Technology Firms to Introduce Smartphone Nudity Controls for Under-18s
×