London Daily

Focus on the big picture.
Tuesday, Jul 21, 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 Universities and Industry Expand Space and Defense Research Partnerships
House of Lords Approves Social Housing Bill Amendments on Shared Ownership Rights
House of Lords Advances Civil Aviation Bill With New Passenger Protection Measures
UK Government Suspends Tariffs on Fertilizer and Food Imports to Reduce Costs
Russell Group Universities Support New UK Business Department Focused on Innovation
UK Parliament Opens Inquiry Into Transport Barriers Facing Young Jobseekers
Home Builders Federation Calls for Lower Costs as New UK Government Sets Housing Priorities
Andy Burnham Meets UK Devolved Leaders to Strengthen Regional Cooperation
Andy Burnham Holds First International Calls With Trump, Macron, and Zelenskyy
Andy Burnham Reshuffles Cabinet With John Healey Appointed Chancellor of the Exchequer
Andy Burnham Government Removes VAT From Electricity Bills to Cut Household Costs
Andy Burnham Becomes United Kingdom Prime Minister After Sir Keir Starmer Resigns
Miliband Sets Climate and International Law at Centre of UK Diplomacy
US Gasoline Returns to $4 as Renewed Iran Fighting Disrupts Oil Flows
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Orders 50% Tariffs on Selected Canadian Imports
Pentagon Discloses Nearly 100 US Troop Injuries During Renewed Iran Fighting
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
US Judge Pauses Paramount Skydance and Warner Bros Discovery Merger Over Antitrust Concerns
NHS England Faces Growing Retention Pressure Among Younger Midwives
UK Data Centre Expansion Faces Water and Grid Capacity Challenges
UK Defence Shares Rise After John Healey Appointment and Continued Spending Commitments
OECD Urges UK Government to Review Pension Triple Lock to Protect Public Finances
Bank of England Keeps Cautious Approach as Energy Costs Threaten Inflation Progress
County Councils Call for Wider Devolution and Long-Term Social Care Funding Reform
IMF Urges UK Government to Maintain Fiscal Discipline as Growth Forecast Slows
Russian Warship Holds Live-Fire Exercises Near UK Coast as Royal Navy Monitors Activity
Mitie Agrees Three Point One Billion Pound Takeover by OCS in Another Blow to London Listings
JPMorgan Chase Warns Bank Levies Could Hit UK Growth and Drive Capital Away
UK Unemployment Holds at Four Point Nine Percent as Labour Market Shows Resilience
UK Government Borrowing Falls Below Forecasts as Treasury Receives Early Fiscal Boost
John Healey Cuts VAT on Household Electricity Bills After Cancelling National Digital ID Scheme
Andy Burnham Forms New Labour Government With Ten-Year National Renewal Plan
EU Imposes Record €550 Million Digital Services Fine on AliExpress
UK Publishes Updated Consumption-Based Carbon Emissions Data
English Regions Prepare for Expanded Devolution and Infrastructure Powers
Russell Group Backs New Government and Calls for Stronger University-Industry Links
Bank of England Maintains Restrictive Monetary Policy Amid Persistent Inflation
Climate Progress Report Renews Debate Over the UK's Net Zero Strategy
New UK Government Launches Drive to End Rough Sleeping and Expand Social Housing
Prime Minister Andy Burnham Appoints John Healey as Chancellor in Cabinet Reshuffle
OECD Calls for Structural Reforms as UK Economy Faces Slower Growth
International Monetary Fund Expects UK Economic Growth to Slow to One Percent in 2026
Andy Burnham Takes Office as UK Prime Minister and Unveils Decade-Long Reform Agenda
London’s Housing Starts Collapse as Planning and Building Costs Stall Development
Charlie Sheen’s Daughter: "My Dad Didn’t Buy Me a House, My Breasts Bought It"
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Naturally Conceived Identical Quadruplets Born in Rare Brisbane Delivery
Tate Brothers Fight British Extradition Bid After Miami Arrests
×