This sector can become next cash cow for Bangladesh while promoting export diversification
Bangladesh, a recently promoted developing country historically heavily dependent on RMG sector for export earnings is considering its Leather and Footwear industry with current export earnings of US$1320.51 million as the second largest export sector. This seems a blessing for the trade deficit burdened country, and its 560,000 people who are directly involved with this industry. This sector has forthcoming immense potential to grow as appreciable demand for leather and footwear products is being generated worldwide. The major markets for the leather and footwear sector of Bangladesh are the China, Japan, Italy, Germany, Spain, USA, and UK which imported US$202.40 million, US$40162 million, US$40.16 million, US$23.67 million, US$15.85 million, US$8.79 million, US$3.25 million, and US$1.87 million respectively from Bangladesh in the FY 2016-17. Currently, the number of total tanneries in Bangladesh is about 113 that yield 180 million square feet of hides and skins in every year. In 2018, the revenue generated from the footwear sector alone of the whole world amounts to US$106,177 million which is expected to grow at 9.2% from 2019 to 2022.
